2024 TAX UPDATES

 here are a few highlights:

• Filing Deadline Dates for 2024:

     * W-9 and 1099 Issued - January 31, 2025

* S Corp Tax Returns (1120S) - March 15, 2025 

* C Corp Tax Returns (1120) - April 15, 2025

 (on a calendar year)

*   Personal Tax Returns (1040) - April 15, 2025

* Partnership Returns (1065)  -  March 15, 2025 

* Fiduciary & Trusts (1041) -  April 15, 2025

* Pension Plans (5500) - July 31, 2025

• As of January 1, 2024, Senate Bill 951 removed the maximum withholding for SDI contributions. No longer is there a Wage Limit for SDI contributions from wages, similar to Medicare.   
• Digital Asset Investors, please note that all Digital Asset transactions after December 31, 2023 must now be reported to the IRS annually. Tax form 1099-DA are expected to be issued to those investors starting in tax year 2025.  
• Teachers, for tax year 2024, you can now deduct up to $300 for unreimbursed school supplies. This is an increase of $50 over previous years.
• Gamblers, netting of your gains and losses are now netted daily. 
• Required Minimum Distribution rules received more guidance for Inherited IRA Accounts. Feel free to call us for guidance on how much you may need to withdraw.
• Traditional and Roth IRA Contribution Limits are $7,000 (plus $1,000 for over 50) in 2024, and the same amount for 2025.
• SEP IRA Contribution Limits for 2024 are 25% of Compensation - maximum $69,000.  This increases to $70,000 for 2025.
• 401k, 403b and 457 Elective Deferral limits are $23,000 (plus $7,500 for over 50) in 2024, $23,500 (plus $7,500 for over 50) in 2025.
• 401k Employer contribution limits is $69,000 for 2024, $70,000 for 2025, with a a maximum compensation limit of $345,000 for 2024 and $350,000 for 2025.
• Annual Gift Tax Exclusion was $18,000 in 2024 and will increase to $19,000 in 2025.  This means an individual can give any amount up to these limits to another individual and not pay "Gift Tax".  
• The threshold for Federal Estate Tax exclusion is now $13.99 Million for individuals. So, if someone passes away in 2025 and their estate is worth $13.99 million or less, they don’t need to worry about the federal estate tax.  But if an individual passes in 2026, this exemption amount will reduce to about $7 Million unless Congress changes  legislation .
• Effective 2024, a College Savings Plan 529 can now be rolled into a Roth IRA for that individual, but Roth IRA limitations do apply, such as:  (1) The 529 Beneficiary (student) must have earned income equal or more than the amount of rollover  (2) the rollover annual limit for 2024 and 2025 is $7,000, for those under the age of 50 (3) a maximum amount of rollover is $35,000 per Beneficiary over their lifetime.
• CFIN BOI E-Filing (also mentioned below) - The Corporate Transparency Act (CTA) is in effect. The act requires Corporations and LLCs to disclose beneficial owners this year and any year there is a change in this ownership.  A beneficial owner may include senior officers, anyone with authority to add or remove senior officers or board of directors, directs, determines or has substantial influence over the entity’s important matters, any form of substantial control, owns or controls not less than 25% equity in the entity.  The purpose is to help the federal government crack down on money laundering and other illicit business activities. Go to https://boiefiling.fincen.gov/boir/htmlfor more information. 

The US Department of the Treasury's Financial Crimes Enforcement Network issued an alert to help financial institutions identify fraud schemes associated with the use of deepfake media created with generative artificial intelligence (Gen AI) tools.

 Every LLC, corporation, or other entity that was created by filing a document with a secretary of state or equivalent office must file a BOI report unless it qualifies for one of the CTA's exemptions.   You can file this report on-line by simply going to:  https://boiefiling.fincen.gov/boir/html.  

You’ll need a pdf copy of your ID (Drivers Lic or Passport) to upload to the form electronically.  The process if relatively simple and should take you just a few minutes.

Going forward, you will only need to file this form annually if there is a change in the ownership of your entity, like new shareholders, members or partners.

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.  For more information go to:  https://www.fincen.gov/boi-faqs