Roth Catch-Up Contributions Problem for 2024, New Standard Deduction Amounts Are Here, Do Veterans Get Tax Breaks?

States With the Lowest Sales Tax | The Problem With 401(k) Catch-up Contributions | Do U.S. Military Veterans Get Tax Breaks? Created for {EMAIL} | [Web Version]( November 26, 2023 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] State Taxes [] [States With the Lowest Sales Tax]( [States With the Lowest Sales Tax]( (Getty Images) The holiday shopping season is in full swing, with some Black Friday deals still available this weekend. Experts predict consumers could spend over $950 billion on holiday gifts in November and December. However, this also means that, in most states, sales tax will be added to your purchases, increasing the overall cost. One option to minimize the tax impact is to shop in states with the lowest sales tax rates. [Here are the top 10](. [Looking for Secure Lifetime Income with Attractive Tax Benefits?]( Supplement your retirement income through a Pomona Plan charitable gift annuity. Enjoy a tax deduction and the security of a fixed income stream from a AAA rated institution. Joint-life annuities and deferred annuities are also available. To learn more, give us a call at 800-761-9899, or click the link below. [Calculate Your Payment Rate]( ADVERTISEMENT [] Tax Planning [] [The Problem With 401(k) Catch-up Contributions]( [The Problem With 401(k) Catch-up Contributions]( (Getty Images) You may have already heard that changes are coming to 401(k) catch-up contributions. Higher earners age 50 or older will soon have to make those contributions on an after-tax, Roth basis. The new catch-up rule was supposed to go into effect next year, in 2024, but the IRS has announced some relief. [Learn how the catch-up relief impacts you and another interesting glitch involving Roth catch-up contributions](. [] Taxes in Retirement [] [Do U.S. Military Veterans Get Tax Breaks?]( [Do U.S. Military Veterans Get Tax Breaks?]( (Getty Images) Military retirees may be surprised to find out how much federal income tax they must pay when filing their first tax return after leaving the service. When coupled with income from a civilian job or a spouse's income, military retirement income can often push Veterans into a higher federal income tax bracket. However, some tax breaks are available for Veterans that can help lower taxable income. [Here are a few examples](. 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]( [] Capital Gains Tax [] [Capital Gains Tax Rates: This Year vs. Next]( Lower tax rates apply to capital gains from the sale of assets held for more than a year to encourage long-term investment. You may qualify for the 0% rate if your income is low enough. On the other hand, wealthier taxpayers will likely pay tax on long-term capital gains at the 20% rate. So, where you stand with capital gains tax rates comes down to your taxable income. To compare, here are the long-term capital gains tax income thresholds for 2023 and 2024. [Read More]( [7 Mistakes to Avoid When Hiring an Advisor]( Working with a financial advisor can be a crucial part of retirement planning. But choosing the wrong one can wreak havoc on your investments. Here are 7 common mistakes to avoid when hiring a financial advisor so you can work towards a more comfortable retirement. [LEARN MORE]( ADVERTISEMENT [] In Case You Missed It [] [Here Are the 2024 Standard Deduction Amounts]( The IRS has released the 2024 standard deduction amounts you'll use to file your tax return in early 2025. The agency adjusts these amounts for each filing status yearly to account for inflation, so the standard deduction amounts are higher for 2024 than for 2023. What will your standard deduction be in 2024? [Read More]( [Track Your Net Worth With This Tool]( See what retirement might look like for you and get a feel for what our award-winning free dashboard can do. Want a more accurate assessment? [READ MORE]( ADVERTISEMENT [] STOP OVERPAYING ON YOUR TAXES [] [STOP OVERPAYING ON YOUR TAXES]( (Kiplinger) 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. Our [flagship publications]( include [Kiplinger Personal Finance]( magazine, [The Kiplinger Letter]( [The Kiplinger Tax Letter]( [Kiplinger Retirement Report]( and [Kiplinger Investing for Income.]( All are regarded as the leading publications in their respective fields. Every day, millions of readers rely on our [free e-newsletters]( for help on everything from getting the best rate on a mortgage or car loan, to managing their businesses in an uncertain world, avoiding an IRS audit, building wealth for a secure retirement, or investing wisely in any kind of market. Now it’s your turn to reap all the rewards Kiplinger has to offer. Visit [Kiplinger.com](, your gateway to all of the above and much more. Check in any time for our latest advice on how to make more money, and keep more of the money you make. Stay right on the money, with Kiplinger. [Sign Up]( | [Print Publications]( | [Unsubscribe]( [Privacy Policy]( | [Cookies Policy]( | [Terms and Conditions]( CONTACT US: [FEEDBACK](mailto:alerts@kiplinger.com) | [ADVERTISE]( [Future]( Future US LLC © Full 7th Floor, 130 West 42nd Street, New York, NY, 10036