New Homebuyer Tax Credits, Should the IRS Do Your Taxes? States That Don’t Tax Retirement Income

The Standard Deduction | Should You Let the IRS Do Your Taxes? | Biden Proposes New Homebuyer Tax Credits Created for {EMAIL} | [Web Version]( March 24, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Tax Breaks [] [The Standard Deduction]( [The Standard Deduction]( (Getty Images) Deciding whether to take the standard deduction or itemize your deductions is crucial when filing your federal income tax return. The standard deduction is a fixed amount that lowers your taxable income. Most taxpayers take the standard deduction, but to make an informed decision, you must know the deduction amount for each tax year. So, if you haven’t filed your federal income tax return yet, [here are the standard deduction amounts for 2023 (and 2024), with some other related information to keep in mind](. [] Filing for Free [] [Should You Let the IRS Do Your Taxes?]( [Should You Let the IRS Do Your Taxes?]( (Getty Images) Did you know about the Direct File pilot program that the IRS launched this tax filing season? This program enables taxpayers to directly file their federal tax returns with the IRS without the need for accountants or commercial software, and it’s free. Recently, the initiative, which has faced opposition from some in Congress and companies like H&R Block and Intuit TurboTax, was expanded to more taxpayers in twelve states. [Would you like to essentially have the IRS file your taxes this year](? [Retire and Inspire. One IRA at a Time]( Did you know you can save for retirement at the same time you care for the planet? Open or roll over an IRA with Domini, and you'll get both a tax advantage and help to mitigate climate change too—all of our Funds are fossil fuel-free in accordance with our investment standards. Explore the Domini Impact Equity Fund. [Open a Fossil Free IRA]( [LEARN MORE]( ADVERTISEMENT [] In the News [] [Biden Proposes New Homebuyer Tax Credits]( [Biden Proposes New Homebuyer Tax Credits]( (Getty Images) President Biden's FY25 budget and State of the Union address advocate for a fairer U.S. tax code. Toward that end, the President has put forth proposals to increase the corporate minimum tax rate, tax billionaires more, and prioritize Medicare and Social Security. Additionally, Biden is proposing new tax credits to make homeownership more affordable. One such proposal involves an annual tax credit of $400 a month for two years that homeowners can put toward their mortgage. [Here's more of what you need to know](. Featured Content Sponsored Content from The Kiplinger Tax Letter [Stop Overpaying on Your Taxes.]( Get a [FREE ISSUE]( of The Kiplinger Tax Letter and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then save up to 58% off the cover price to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( [] Health Savings [] [Avoiding Non-Eligible HSA Expenses]( Maximizing Health Savings Account (HSA) contributions can significantly reduce your tax bill. However, using those funds to purchase non-eligible items could lead to trouble with the IRS. In some cases, even with a doctor's note, the IRS may consider certain products non-HSA-eligible. The IRS also warns taxpayers that some marketing campaigns could misrepresent what is and is not HSA-eligible. So, how can you avoid tax penalties from the IRS regarding your HSA expenses? [Read More]( [The Minimum Investment for a Financial Advisor]( How much money should you have before hiring a financial advisor? Find out the level of liquid assets at which an advisor's benefits potentially outweigh the costs. [Learn More]( ADVERTISEMENT [] In Case You Missed It [] [13 States That Don’t Tax Retirement Income]( Moving to a state that does not tax retirement income can reduce your taxes during retirement. If your retirement income consists of Social Security benefits, distributions from a 401(k) or IRA, or a pension, you will not receive a tax bill from the states on this list. However, you may still have to pay taxes on other income you earn during retirement, such as wages, interest, and dividends. Federal income tax also still applies in these states. But in case you missed it, here are 13 states that don't tax retirement income. [Read More]( [8 Ways to Potentially Lower Your Taxes]( When it comes to filing your federal income taxes, it can pay to review your situation and plan ahead. By planning throughout the year, you can implement different strategies to lower your taxable income. This proactive mindset may be worth it when it comes time to file. [READ MORE]( ADVERTISEMENT [] STOP OVERPAYING ON YOUR TAXES [] [STOP OVERPAYING ON YOUR TAXES]( (Getty Images) Get a [FREE ISSUE of The Kiplinger Tax Letter]( and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then [save up to 58% off the cover price]( to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( ABOUT KIPLINGER When we write about money, we get it right. So the decisions you make with your dollars are also right. Kiplinger is a trusted provider of unbiased financial advice, objective business and economic forecasts, and practical help to millions of business professionals, investors, and individuals seeking to make more profitable decisions with their money. 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