11902 Rosecrans Ave Suite B Norwalk, CA. 90650 Tel (562) 381-2408 Fax (562) 991-5401
2024 Tax Season Newsletter
Rosamaria Galindo, EA
Federally Authorized Tax Practitioner
As tax season approaches, we are eager to reconnect with familiar faces and meet new ones. We are proud to be your frontline for tax updates. Your participation in our growing office is crucial in maintaining our customer service. By sharing the responsibilities of the tax season stress, we ensure a smoother experience for everyone. This also called for an addition of new friendly smiles to the BPA family. Introducing our new Office Clerk, Denzel, and Tax Professional, Ovidio Ortega. To get to know our new team members, you can visit our website, www.bpataxes.com and under “About Us” you will find their bios. Please see our updates below and as always, thank you for trusting our office.
Office Procedure Updates:
To enhance efficiency and better serve our clients, we have implemented an online appointment scheduling system. You can now easily book your appointment through our website or contact our office for assistance.
To streamline the document submission process, we encourage clients to use our secure online portal. This ensures the confidentiality and security of your sensitive information. If you encounter any issues, our team is available to guide you through the process.
Smoother Tax Appointments:
Being prepared before your tax appointment is crucial for a seamless process. Submit your documents and intake forms ahead of time to eliminate confusion and stress, ensuring a smooth and stress-free tax return filing process.
Stay Connected – Stay Informed:
Keeping in touch is a breeze with our text, email, and social media platforms. If you haven't signed up yet, it's not too late – register now and enjoy a $5 discount coupon! Call or text 562) 888-1517, to get more information.
Tax Updates for 2024:
Tax Season Starts January 29, 2024!
Tax Bracket and Standard Deduction Adjustments:
The IRS has made adjustments to tax brackets for the 2024 tax year to slightly account for inflation. This also includes an increase to the standard deduction increasing by 6.5%. Although tax brackets and standard deductions have accounted for inflation, itemizing will have the same impact as last year.
Child Tax Credit Changes:
There have been updates to the Child Tax Credit, including modifications to eligibility criteria and payment amounts. The Earned Income Tax Credit has increased by 6.7% for a maximum of $7,430 for three or more qualifying children. The Child Tax Credit has remained the same at $2,000 deduction for 16 and younger dependents, and $500 for all other dependents. Additional Child Tax Credit increased to $1,600 to reach $2,000 by 2025.
IRA and 401K Contributions:
The traditional IRA and Roth contribution limits in 2023 increased slightly from 2022. Individuals can contribute up to $6,500 to an IRA, and those age 50 and older also qualify to make an additional $1,000 catch-up contribution. In addition, the 2023 contribution limits for tax-deferred 401(k)s and Roth 401(k)s have increased to $22,500. If you're age 50 or older, you qualify to make an additional $7,500 catch-up contribution for this tax year as well.
If you're able to, consider maxing out your contributions to these accounts. Doing so can provide a huge boost to your retirement saves and potentially provide a tax deduction.
Cash App Tax Changes:
The implementation rules for Form 1099-K have been postponed for another year to provide additional planning time. Starting in 2024, the new threshold for Form 1099-K will be $5,000. Notable cash applications like Venmo, CashApp, and PayPal will adopt this rule, but Zelle is not among the applications affected.
We are committed to providing you with excellent service and ensuring a smooth tax-filing experience. If you have any questions or concerns, please don't hesitate to reach out to our office. Thank you for choosing us as your trusted tax partner.