October Monthly Tax Update 2024: Key Insights for Tax Professionals

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Staying current with the latest tax regulations and updates is essential for all tax professionals. In the recent October Monthly Tax Update for 2024, experts Jason Dinesen and Nicholas Preusch discussed crucial developments that could significantly impact your practice and clients. Here are the main takeaways.

Key October Tax Updates

1. Inflation Adjustments for 2025

The IRS has announced important inflation adjustments for the 2025 tax year, which will apply to returns filed in 2026. Key changes include:

Standard Deduction Increases:
- Single/Married Filing Separately: $15,000 (+$400)
- Married Filing Jointly: $30,000 (+$800)
- Head of Household: $22,600 (+$600)
Other Key Adjustments:
- Foreign Earned Income Exclusion: $130,000
- Estate Tax Exclusion: $13,990,000
- Gift Tax Exclusion: $19,000

These adjustments will be vital in planning and advising clients on their tax obligations for the coming year.

2. Social Security Wage Base Increase

For 2025, the Social Security Wage Base has increased to $176,100, up from $168,600. This change affects payroll calculations and employee contributions, so it’s important to update systems accordingly.

3. Legislative Changes on the Horizon

Tax professionals should be aware of potential changes as parts of the Tax Cuts and Jobs Act (TCJA) are set to expire on December 31, 2025. Legislative shifts during any upcoming lame-duck sessions could influence the tax landscape moving forward.

4. PTIN Renewal Requirements

The PTIN renewal deadline is December 31, with a renewal fee of $19.75. Ensure your data security plan is up-to-date, as it’s now required for the renewal process.

In Summary

This October Monthly Tax Update offers essential information for tax professionals preparing for the upcoming tax year. By understanding these developments, you’ll be equipped to better serve your clients and ensure compliance with the latest regulations.

Stay connected with MY-CPE for in-depth guidance, resources, and support to keep your tax practice on top of the latest industry changes.

Source: October Monthly Tax Update 2024

Published November 07, 2024

florene simpson

Florene Simpson is a seasoned accounting and tax professional with over 15 years of experience. She specializes in helping individuals and businesses navigate complex tax regulations and optimize financial strategies. Florene is dedicated to empowering clients with insights that drive informed financial decisions and long-term success.