As we enter a new year, it’s time to gear up for another tax filing season. Whether you’ve been filing tax returns for years or are new to the process, understanding the basics can make tax filing less daunting.

This article covers key tax season basics, including the tax brackets for 2023 and 2024, standard deduction versus itemized deductions, when the tax filing season opens, and other essential information to help you file your 2024 tax returns and plan for 2024.

2023 and 2024 Federal Income Tax Brackets

In the US, federal income taxes are progressive, meaning high-income taxpayers pay a higher maximum rate than low-income taxpayers.

Tax brackets are ranges of income taxed at a particular tax rate. For example, if you’re in the 35% income tax bracket, you don’t pay a 35% rate on all your income—just the portion that falls into the highest bracket.

There are currently seven federal income tax brackets. Here are the ranges of taxable income that fall into those brackets for 2023 and 2024

2023 Tax Brackets (For Taxes Filed in 2024)

Marginal Rate	Single Filers	Married Couples Filing Jointly
10%	$11,000 or less	$22,000 or less
12%	$11,001 to $44,725	$22,001 to $89,450
22%	$44,726 to $95,375	$89,451 to $190,750
24%	$95,376 to $182,100	$190,751 to $364,200
32%	$182,101 to $231,250	$364,201 to $462,500
35%	$231,251 to $578,125	$462,501 to $693,750
37%	$578,126 and above	$693,750 and above

2024 Tax Brackets (For Taxes Filed in 2025)

Marginal Rate	Single Filers	Married Couples Filing Jointly
10%	$11,600 or less	$23,200 or less
12%	$11,601 to $47,150	$23,201 to $94,300
22%	$47,151 to $100,525	$94,301 to $201,050
24%	$100,526 to $191,950	$201,051 to $383,900
32%	$191,951 to $243,725	$383,901 to $487,450
35%	$243,726 to $609,350	$487,451 to $731,200
37%	$609,351 and above	$731,201 and above

Why it matters: You can use tax brackets to your advantage by claiming tax deductions. Remember, tax brackets apply to your taxable income—not your gross income. Anything that lowers your taxable income, such as contributing to a 401(k), lowers your tax burden, making saving for retirement more affordable.

Standard Deductions vs. Itemized Deductions

You can choose between taking the standard deduction or itemizing deductions when filing your taxes. You’ll generally choose whichever option results in a larger tax benefit.

The standard deduction is a predetermined amount, based on your filing status, that reduces your taxable income. The Internal Revenue Service (IRS) adjusts the standard deduction annually for inflation.

Here are the standard deduction amounts for the 2023 and 2024 tax years.

Filing status	2023 Standard Deduction	2024 Standard Deduction
Single & Married Filing Separately	$13,850	$14,600
Married Filing Jointly & Qualifying Widow(er)	$27,700	$29,200
Head of Household	$20,800	$21,900

Itemized deductions involve listing eligible expenses like mortgage interest, state and local taxes, medical expenses, and charitable donations. If your itemized deductions exceed the standard deduction available for your filing status, it’s more beneficial to itemize.

Why it matters: Claiming the standard deduction is easier because you don’t need to track and document all of your itemized deductions. Roughly 90% of taxpayers claim the standard deduction rather than itemizing.

However, certain taxpayers can reduce the amount of taxes they owe by itemizing. If your total itemized deductions are close to your maximum standard deduction, you may be able to take steps to increase your deductions and benefit from itemizing.

For example, you can deduct out-of-pocket medical expenses that exceed 7.5% of your adjusted gross income (AGI). If your family has a few expensive medical procedures on the horizon, getting them all done in one year can increase your potential deduction.

Bunching charitable contributions is another way to increase your itemized deductions. For example, if you usually donate $5,000 per year to your favorite charity, consider whether you can donate $15,000 every three years instead.

When Does the 2024 Tax Filing Season Open?

Each year, the IRS announces the opening day of tax season. This is the first day the federal government will start accepting and processing returns for the previous tax year.

For the 2024 tax filing season (tax year 2023), tax season opens on January 29, 2024.

Of course, you don’t need to wait until that date to get started. Start gathering your business income records, 1099s, W-2s, receipts, and other necessary documentation as soon as possible so you’re ready to file your federal income tax return.

Other Federal Income Tax Filing Basics

Here are a few other tax preparation basics to keep in mind this filing season:

• Contributions to retirement accounts. You have until the tax filing deadline to contribute to a traditional or Roth IRA for the prior year. This means you can contribute toward your 2023 tax year limit of $6,500 until April 15, 2024. If you have a SEP-IRA, the deadline to make contributions for the prior tax year is the due date of your return, including extensions—potentially October 15, 2024, if you request an extension.
• E-filing with direct deposit. If you’re expecting a tax refund, the fastest way to get that refund is to e-file your return and opt for direct deposit.
• Tax filing deadline. The deadline for filing your 2023 S-Corporation or Partnership tax return is March 15, 2024.  The deadline for filing your 2023 personal tax return is April 15, 2023. If you need more time, you can request an extension, which gives you until September 15^th or October 15, 2024, respectively, to file your return. If you request an extension, remember it’s an extension of time to file your return, not pay the amount you owe. You still need to estimate your tax liability and pay by the April 15^th deadline. Otherwise, you could owe interest and penalties. If you don’t have the funds to pay the IRS immediately, you can request a payment plan.

Get Professional Tax Planning Help

Every person’s tax situation is unique, so while this guide provides a few federal income tax basics, it’s obviously not an exhaustive list of every tax deduction available.

That’s why working with a trusted tax professional who can dig into your income tax returns and help you identify deductions, credits, and tax planning strategies that work for you is essential.

If you need help with your bookkeeping & tax strategy, contact NewWay Accounting. With an understanding of your tax brackets, deductions, and critical dates and help from a tax pro on the big issues, you can confidently approach the next tax season!