New 2024 State Tax Changes, Highest Capital Gains Rates? Estate Tax Rules

W-4 Form Tax Withholding: What You Need to Know | New State Tax Changes | Do You Know Your 2024 Federal Tax Bracket? Created for {EMAIL} | [Web Version]( April 28, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Your Paycheck [] [W-4 Form Tax Withholding: What You Need to Know]( [W-4 Form Tax Withholding: What You Need to Know]( (Getty Images) When starting a new job, you have to fill out a W-4 form to determine how much income tax your employer will withhold from your wages. To complete this IRS form, you provide information like filing status, family income from other jobs, dependents, and tax deductions. You can also use the W-4 form if you have a side hustle, receive non-wage income, or want to adjust your tax refund. So, it’s important to fill it out correctly. [Here are ten things you need to know](. [] State Taxes [] [New State Tax Changes]( [New State Tax Changes]( (Getty Images) While federal taxes often get the most attention during the year, it's worth noting that 2024 comes with significant changes to state taxes across the United States. These changes include gas and sales taxes, property tax amendments, expanded credits, and income tax cuts. Since state and local taxes are often the highest taxes people pay, it is important to be aware of these shifts. [This summary highlights key state tax changes that could impact how much money you keep this year](. [Best Compounding Interest Investments in Preparing for Retirement]( If you invested in an S&P 500 index fund starting in January 2000 until September 2020 your average annualized return would have been 4.2%, a cumulative return of 136%. But if you reinvested all dividend payments your annualized return would have been 6.2%, a cumulative return of 247%. Just reinvesting dividends would have nearly doubled your gains. [READ MORE]( ADVERTISEMENT [] Tax Planning [] [Do You Know Your 2024 Federal Tax Bracket?]( [Do You Know Your 2024 Federal Tax Bracket?]( (Getty Images) Good planning is necessary to manage your finances in a tax-efficient way. Since you have likely recently filed your 2023 federal income tax return, you may have ideas about tax strategy changes you need to make before the end of this year. The good news is the IRS has established the 2024 income tax brackets, allowing you to plan for the next tax season (returns filed in early 2025). It's important to note that the tax rates will remain the same as they are currently, which are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. [What’s your federal bracket for this year](? 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 [] [Worst States for Long-Term Capital Gains]( The federal capital gains tax is not the only tax to consider when investing. Many states also impose taxes on long-term capital gains held for more than a year, and the rates can vary by state. To help make informed investment decisions, it's good to be aware of the states with the highest long-term capital gains tax rates. [Read More]( [Help Minimize Your Taxes in Retirement]( Our advisors can help you focus on withdrawing your retirement money in a way that helps keep your taxes low. The less you pay in taxes, the longer your money can last. You've worked hard to build up a nest egg and Vanguard advisors are here to help. [LEARN MORE]( ADVERTISEMENT [] In Case You Missed It [] [The Estate Tax Exemption]( Did you know that the federal estate tax exemption amount has been increased for 2024? This means that more estates may be exempt from the federal tax this year, which can save heirs from a hefty tax bill. The IRS adjusts the amount for inflation each year, so even though the increase may not be a surprise, it's still a notable development for many wealthy taxpayers. [Read More]( [Is your money working hard enough?]( It should be! Learn how Betterment's automated investing and savings technology can make your money hustle, while you don't. [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. 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. 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