Some deductions are only available if you itemize your deductions, while others are still available even if you decide to take the standard deduction. Tax deductions help lower the amount of your income that can actually be taxed. Both help you keep more money in your pocket instead of Uncle Sam’s but in slightly different ways. The closest things to magic words when it comes to taxes are deductions and credits. Tax Deductions and Credits to Consider for Tax Season 2024 Itemizing is more of a hassle, but it’s worth it if your itemized deductions add up to more than the standard deduction. When you pay taxes, you have the option of taking the standard deduction or itemizing your deductions (calculating your deductions one by one). For 2023 returns, the tax brackets also look a little different.Ģ022 Marginal Income Tax Rates and BracketsĢ023 Marginal Income Tax Rates and Brackets
If you’re still working on your 2022 tax return for the extended October deadline, you’ll still use the 2022 brackets. (We break it down in the chart below.)įor the 2022 tax year, the tax brackets went up a few hundred dollars to account for inflation. Instead, part of your income is taxed at 10%, another part at 12%, and the last part at 22%. But that doesn’t mean your tax rate is a flat 22%. Here’s a refresher on how income brackets and tax rates work: Your tax rate (the percentage of your income you pay in taxes) is based on what tax bracket (income range) you’re in.įor example, if you’re single and your income is $75,000, then you’re in the 22% tax bracket. Income Brackets and Rates for the 20 Tax Seasons Got it? Keep that in mind whenever we’re talking about the tax season or tax year. So, during the 2024 tax season, you file taxes for the 2023 tax year. The tax season is when you file, report and pay any taxes owed from the last year. The tax year is the actual year where you earn income, pay income taxes, make charitable contributions, work side gigs, etc. You’ll often hear the phrases tax year and tax season. If you’re not sure you have everything you need, you’ll want to reach out to a tax pro-especially if you have a complicated tax situation.īefore we dive into tax brackets, let’s talk some lingo. Once you have these forms gathered and organized, you’ve got the green light to file your taxes. Now’s also a great time to gather your receipts (you kept those, right?) if you plan on itemizing your deductions so you’re not scrambling and pulling your hair out by the time April rolls around. Here are a few other tax forms you might need: Freelancers should also be on the lookout for a 1099 form from each of their clients. 1 Since many employers use a digital payroll system for direct deposit, you might also find your W-2 online. A W-2 form from your employer should be in your mailbox by the end of the month. If there is no record of a 1099-G in your account, you may not have received a taxable income tax refund last year.Tax season typically starts at the end of January. If you do not receive the 1099-G in the mail, sign up for access and log into your account through our Revenue Online service to view the amount of last year's Colorado refund that was reported to you on Form 1099-G. Taxpayers who took the standard deduction on last year's federal return generally will not report the refund on their federal return. Taxpayers who itemized their deductions using Schedule A on last year's federal return must use this information to complete their federal return this year. Contributions to any of the voluntary checkoff funds.Overpayment intercepted by the IRS or by a state agency.Overpayment applied to a prior year's balance due.Overpayment credited to the following year's estimated tax.
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