Several IRS rule changes for tax year 2024 will affect millions of people filing their returns this spring. These changes may create new opportunities to lower your tax bill or increase your refund.

First, standard deductions rose in 2024 to $14,600 for single filers and married people filing separate returns, $21,900 for head of household filers, and $29,200 for joint filers. All of these figures represent increases of at least $750 over 2023 levels. In addition, the annual contribution limit for IRAs increased by $500 in 2024, up to $7,000 for people under 50 years old, and $8,000 for those of age 50 or older. If you have not yet reached the limit, then you may still make 2024 contributions to your traditional or Roth IRAs up until April 15, 2025.

Congress also enacted several rule changes for the Additional Child Tax Credit (ACTC), a companion credit to the standard Child Tax Credit (CTC). The maximum CTC amount for 2024 is $2,000 per qualifying child. The credit is nonrefundable, which means that if your CTC amount exceeds the tax you owe, you cannot receive the excess credit as a refund. However, many people who qualify for the CTC are also eligible for the ACTC, which makes the CTC at least partially refundable. For 2024, the maximum ACTC amount is $1,700, a $100 increase from 2023.