Resources

Federal Tax Resources

Marginal rates: For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).
The other rates are:
35% for incomes over $243,725 ($487,450 for married couples filing jointly)
32% for incomes over $191,950 ($383,900 for married couples filing jointly)
24% for incomes over $100,525 ($201,050 for married couples filing jointly)
22% for incomes over $47,150 ($94,300 for married couples filing jointly)
12% for incomes over $11,600 ($23,200 for married couples filing jointly

The tax year 2024 maximum Earned Income Tax Credit amount is $7,830 for qualifying taxpayers who have three or more qualifying children, an increase of from $7,430 for tax year 2023. The revenue procedure contains a table providing maximum EITC amount for other categories, income thresholds and phase-outs.

Find more information at the link below:
IRS provides tax inflation adjustments for tax year 2024 | Internal Revenue Service

Retirement Contribution Highlights of changes for 2024

The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan is increased to $23,000, up from $22,500.

The limit on annual contributions to an IRA increased to $7,000, up from $6,500. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 for 2024.

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan remains $7,500 for 2024. Therefore, participants in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan who are 50 and older can contribute up to $30,500, starting in 2024. The catch-up contribution limit for employees 50 and over who participate in SIMPLE plans remains $3,500 for 2024.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer's spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase‑out ranges for 2024:

For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $77,000 and $87,000, up from between $73,000 and $83,000.
For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $123,000 and $143,000, up from between $116,000 and $136,000.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000.
For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $146,000 and $161,000 for singles and heads of household, up from between $138,000 and $153,000. For married couples filing jointly, the income phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $76,500 for married couples filing jointly, up from $73,000; $57,375 for heads of household, up from $54,750; and $38,250 for singles and married individuals filing separately, up from $36,500.

The amount individuals can contribute to their SIMPLE retirement accounts is increased to $16,000, up from $15,500.

Offer in Compromise

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. For more information visit the website below.

https://www.irs.gov/payments/offer-in-compromise

Identity Protection

An Identity Protection PIN (IP PIN) is a six-digit number that prevents someone else from filing a tax return using your Social Security number. The IP PIN is known only to you and the IRS and helps us verify your identity when you file your electronic or paper tax return.
https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

Tax Payers Fundamental Rights

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and our obligations to protect them.
https://www.irs.gov/taxpayer-bill-of-rights

Maryland Tax Resources

What is the Homeowners' Property Tax Credit Program?

The State of Maryland has developed a program which allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a limit on the amount of property taxes.

For more information check out: https://dat.maryland.gov/realproperty/Pages/Homeowners%27-Property-Tax-Credit-Program.aspxomeowners' Property Tax Credit Program (maryland.gov)

What is the Renters' Tax Credit Program?

The Renters' Tax Credit Program provides property tax credits for renters who meet certain requirements. The plan was modeled after and designed to be similar in principle to the Homeowners' Tax Credit Program, which is known to many as the Circuit Breaker Program. The concept rests on the reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection, as do homeowners.

For more information check out:

https://dat.maryland.gov/realproperty/Pages/Renters%27-Tax-Credits.aspx

College Savings plans that reduce your taxable income.

If you make contributions to one of Maryland State’s Education Savings Plans, you can lower your taxable income and at the same time save for future college expenses. These plans have flexible contribution options for every budge starting at just $25.

For more information check out: https://maryland529.com

Federal Retirement contribution guidelines

DC Tax Resources

You must file a DC tax return if:

You were a resident of the District of Columbia and you were required to file a federal tax return. (A resident is an individual domiciled in DC at any time during the taxable year);
You maintained a place of abode in DC for a total of 183 days or more even if your permanent home was outside of DC;
You were a part-year resident of DC (see instructions for part-year residents);
You were a member of the United States (U.S.) armed forces and your home of record was the District of Columbia for either part of or the full taxable year;
You are the spouse of an exempt military person or of any other exempt person such as a nonresident presidential appointee or an elected official;
If you want to receive a refund of DC taxes withheld during the year, or if you qualify for and want to receive the following refundable credits:
- The DC Earned Income Tax Credit;
- Schedule N, Non-Custodial Parent Earned Income Tax Credit;
- Schedule H, Homeowner and Renter Property Tax Credit; or
- Schedule ELC, Keep Child Care Affordable Tax Credit (formerly Early Learning Tax Credit)

Find more information at the link below:

DC Individual and Fiduciary Income Tax Rates | otr

Virginia Tax Resources

Residency and the credit

The guidelines for claiming the credit differ based on your residency. During the tax year for which you are claiming the credit, were you a resident, part-year resident, or a nonresident?

See our residency guidelines if you're not sure.

If you’re a Virginia resident, all of your income is subject to Virginia individual income tax, no matter where it was earned or what its source. If you received income from another state and were required to pay income taxes as a nonresident in that state, you may be eligible for a credit for the income taxes you paid to that state provided the income is also taxed by Virginia. If you earn income in a state that doesn’t have an income tax, you are not eligible for this credit on that income.