Americans are facing a perfect storm in the next couple of years: 2024 is an election year, and there’s increased chatter, uncertainty and political divide. They’re also dealing with meaningful inflation and rising (if stabilizing) interest rates. And of course, on December 31, 2025, the Tax Cuts and Jobs Act of 2017 will sunset and set the clock back on current income and estate tax rates.
As you plan for the year ahead, you may be thinking about how the Internal Revenue Service’s adjustments to income tax brackets and standard deductions—which include a 5.4% bump in bracket thresholds—could affect your 2024 tax planning season. But even this year, as always, the best tax planning practices remain the same.
Take stock of what your advisor tells you and whether they may be overpromising just to get your business.