Key State Tax Changes for 2024, IRS Waiving Back Tax Penalties? Your 2023 and 2024 Federal Tax Brackets

State Tax Changes: What s New in 2024 | Is the IRS Waiving Your Tax Penalties? | The EV Tax Credit Changed Again on Jan. 1: What You Need to Know Created for {EMAIL} | [Web Version]( January 7, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Looking Ahead [] [State Tax Changes: What’s New in 2024]( [State Tax Changes: What s New in 2024]( (Getty Images) As we move into a new year, it's common for many of us to start thinking about taxes. While federal taxes often get the most attention, it's worth noting that 2024 brings significant changes to state taxes across the United States. These changes will impact a range of taxes, including gas taxes, property tax amendments, and income tax cuts. Given that state and local taxes are often the highest taxes that most people pay, it is important to be aware of these shifts. So, [here's a summary of some key state tax changes that may impact your finances this year](. [] In the News [] [Is the IRS Waiving Your Tax Penalties?]( [Is the IRS Waiving Your Tax Penalties?]( (Getty Images) Some of us can’t think about taxes without worrying a little about IRS penalties for not paying what we owe on time. However, certain taxpayers can worry a little less now since the IRS announced late last month that it is waiving certain tax penalties. The automatic tax relief involves back taxes owed by more than 4.7 million people and entities that didn’t receive automated collection reminders during the COVID-19 pandemic. [Here’s what you need to know about how the relief works and who qualifies](. [It's not too late to open an IRA]( 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 [] Tax Credits [] [The EV Tax Credit Changed Again on Jan. 1: What You Need to Know]( [The EV Tax Credit Changed Again on Jan. 1: What You Need to Know]( (Getty Images) If you want to buy a Tesla, Chevy Bolt, or Chrysler Pacifica plug-in hybrid, you may be in luck. These are just some of the electric vehicles that still qualify for the federal EV tax credit in 2024. Major changes to the up to $7,500 credit kicked in on New Year’s Day meaning that your favorite EV may no longer be eligible for a tax break. But there’s also some better news: the credit may now, in some cases, be claimed at the point of sale. [Read on for more information about these changes](. 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]( [] Taxes in Retirement [] [States That Won’t Tax Your Pension]( Most states tax at least a portion of the income from many types of retirement benefit plans. Your state might have a pension exclusion, but chances are it's limited based on your age and/or income. However, some states don't tax pension income no matter your age or how much money you have. If you’re wondering where your state stands, take a look at our list of 15 pension-friendly states (listed alphabetically). [Read More]( [7 Secrets to Know About Hiring a Financial Advisor]( Choosing a financial advisor is a major life decision that can determine your financial trajectory for years to come. Be aware of these 7 secrets comfortable retirees know about hiring an advisor, so you can find peace of mind and potentially avoid years of stress. [LEARN MORE]( ADVERTISEMENT [] In Case You Missed It [] [2023 and 2024 Federal Tax Brackets]( Federal income tax rates depend on tax brackets that change yearly for inflation. This means you could fall into a higher or lower tax bracket each year based on your income, and pay a different tax rate from one year to another. With that in mind and the start of tax season just around the corner, it’s good to know which bracket you fall into, if you don’t already. So, in case you missed it, here’s Kiplinger’s guide to federal tax brackets and income tax rates for 2023 and 2024. [Read More]( [Share Your Story with Future Generations]( Passing down your life experiences, lessons and memories to the next generation of your family is a priceless gift. Call (844)-399-0426 to learn how you can begin your private autobiography today. [LEARN 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. 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