Tax Legislation and IRS Inflation Adjustments

Tax Legislation

A politically divided Congress struggled to pass any form of meaningful legislation in 2023. There had been some discussion around extending or modifying certain expiring tax provisions of the Tax Cuts and Jobs Act (TCJA). Expiring TCJA provisions were not the only tax items gathering some movement. Congress had also been discussing multiple tax changes during the year, but the bills were unable to garnish enough support to make their way through committees to the floor for a vote.

Inflation Adjustments

In November, the IRS released inflation-adjusted figures for different components of the Internal Revenue Code. These adjustments apply to tax brackets, phaseouts, contribution limits and various other items for 2024. This memorandum highlights many of these items as we draw closer to the 2024 tax year.

Considering interest rate increases during 2023, the persistence of inflation, and increased market volatility, strategic tax planning remains paramount for individuals seeking to optimize cash flow while minimizing their tax liabilities. It is imperative to be aware of changes from 2023 to 2024 and evaluate for any potential impact on your taxable situation.

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