Tax laws and regulations are updated almost every year and staying informed is essential for making smart financial decisions. As a US taxpayer, understanding these changes helps us take advantage of new opportunities and avoid potential challenges. It can be overwhelming to keep track of everything, but don’t worry, we are here to help. Below, we have highlighted the key tax updates from 2022, 2023 and 2024 that we get asked:

TOPIC 2022 2023 2024
Standard Deduction:

Single/Married Filing Separately

Head of Household

Married Filing Jointly/Surviving Spouse

  

$12,950

$19,400

$25,900

  

$13,850

$20,800

$27,700

  

$14,600

$21,900

$29,200

 

Foreign Earned Income Exclusion (FEIE) $112,000 $120,000 $126,500

 

Foreign Housing Amount Limitation
* The limit will vary depending upon the location of your foreign tax home and the number of qualifying days in the tax year.		 $33,600 (30%of FEIE) $36,000 (30%of FEIE) $37,950 (30%of FEIE)

 

Base Housing Amount  

 

$17,920

(16% of FEIE)

  

 

$19,200

(16% of FEIE)

  

 

$20,240

(16% of FEIE)

 

Individual Retirement Account (IRA) Contribution Limit:

Age 49 and below

Age 50 and above

  

$6,000

$7,000

  

$6,500

$7,500

  

$7,000

$8,000
Gift Tax Annual Exclusion per Recipient

Lifetime Exemption

Gifts to Nonresident Alien Spouse

 $16,000

$12.06 M

$164,000

 $17,000

$12.92 M

$175,000

 $18,000

$13.61 M

$185,000
Federal Estate Tax Exemption $12.06 M $12.92 M $13.61 M

 

 

Alternative Minimum Tax (AMT) Exemption:

Single/Head of Household

Married Filing Separately

Married Filing Jointly/Surviving Spouse

Phase-Out Threshold:

Single/Head of Household

Married Filing Separately

Married Filing Jointly/Surviving Spouse

  

$75,900

$59,050

$118,100

 

$539,900

$539,900

$1,079,800

  

$81,300

$63,250

$126,500

 

$578,800

$578,800

$1,137,500

  

$85,700

$66,650

$133,300

 

$609,350

$609,350

$1,218,700

 

Disclaimer:

This article is shared for educational purposes and is not intended as legal or tax advice. The information in the table above is sourced from the IRS website and is just the tip of the iceberg. For advice tailored to your tax situation, it’s best to consult a trusted tax professional. Have questions? Feel free to contact us, and we’ll be glad to assist.