As we approach the tax filing season, we understand that the process can be overwhelming. To assist you in navigating through this process smoothly, we've compiled some essential tips and resources to help you maximize your tax deductions and ensure a hassle-free filing experience.
When preparing to file your taxes, make sure to gather the following key documents:
1. Form 1098 "Mortgage Interest": If you've paid mortgage interest on your home loan during the tax year, you'll receive Form 1098 from your lender. This form outlines the amount of mortgage interest you paid, which may be deductible on your tax return.
2. Marginal Tax Bracket: Understanding your marginal tax bracket is crucial for effective tax planning. Your marginal tax bracket determines the rate at which your last dollar of income will be taxed. Refer to the chart below to identify your tax bracket and plan your tax strategies accordingly.
Marginal tax brackets for 2024 tax year
This table visualizes the marginal tax brackets for the 2024 tax year, showing the different tax rates for individual income and married couples filing jointly at various income levels.
|
Marginal rate |
Individual income |
Married couples filing jointly |
|
10% |
$11,600 or less |
$23,200 or less |
|
12% |
$11,601 to $47,150 |
$23,201 to $94,300 |
|
22% |
$47,151 to $100,525 |
$94,301 to $201,149 |
|
24% |
$100,526 to $191,950 |
$201,150 to $383,899 |
|
32% |
$191,951 to $243,725 |
$383,900 to $487,449 |
|
35% |
$243,726 to $609,349 |
$487,450 to $731,199 |
|
37% |
$609,350 or more |
$731,200 or more |
3. Closing Disclosure: If you closed on a mortgage in the previous calendar year, you will want to save a copy of your Closing Disclosure. This document provides detailed information about your mortgage loan terms, closing costs, and other pertinent details that may impact your tax filing.
Additional Resources:
To help you determine the appropriate number of allowances to claim throughout the year and optimize your tax withholding, we recommend utilizing the IRS Tax Withholding Estimator. This tool provides personalized guidance based on your specific financial situation and helps you avoid overpaying or underpaying taxes.
If you're interested in learning more about The Tax benefits of homeownership check out my previous blog.
We hope these tips and resources prove valuable to you as you prepare to file your taxes. Should you have any questions or require further assistance, please don't hesitate to reach out to us. We're here to support you every step of the way.
Thank you for entrusting us with your financial needs. We wish you a successful and stress-free tax season!