Educational Overview – Not Tax Advice
Tax season can feel overwhelming, especially if you’re unsure where to start. At HonorPoint Financial Solutions, we believe that knowledge is power—and when it comes to your taxes, understanding a few key concepts can help you make smarter decisions all year long. Take a moment and learn some Tax Day basics.
Disclaimer: This article is for educational purposes only and does not constitute financial or tax advice. Everyone’s tax situation is unique—please consult a qualified tax professional for personalized guidance.
Tax Day Basics and How to File Taxes with Confidence
What Is Tax Day and Why It Matters
Tax Day typically falls on April 15 each year. It’s the deadline to file your federal income tax return for the previous calendar year. If it falls on a weekend or holiday, the deadline may be adjusted.
When and How to File Federal Income Taxes
You can file your taxes electronically using tax software, through a tax professional, or by mailing in paper forms. Filing early helps avoid delays in processing and potential penalties.
What Documents You’ll Need to File Your Return
Gather your W-2s, 1099s, receipts for deductible expenses, last year’s tax return, and any records related to student loans, childcare, or health insurance.
Understanding Income Taxes and the Standard Deduction
Important: The content here reflects general rules and 2024 data. Your eligibility for deductions and filing strategies will depend on your individual financial situation.
How the Standard Deduction Lowers Your Taxable Income
The standard deduction is a flat dollar amount that reduces your taxable income. For most Americans, it makes more financial sense to take this deduction rather than itemize.
2024 Standard Deduction Amounts
- Single filers: $14,600
- Married filing jointly: $29,200
Why Most People Don’t Itemize After the 2017 Tax Law Change
The 2017 Tax Cuts and Jobs Act significantly increased the standard deduction. Because of this, even common itemized deductions like mortgage interest or charitable donations rarely exceed the new threshold.
When Might It Make Sense to Itemize Deductions?
Itemizing may still be worthwhile if your combined deductions exceed the standard deduction. For example, if you paid $10,000 in mortgage interest, made $5,000 in charitable donations, and had $2,000 in qualified medical expenses, itemizing could be more advantageous.
However, this level of deductible spending is uncommon for most taxpayers after the 2017 law change.
2024 Federal Tax Brackets and How They Affect You
Federal income taxes are based on a progressive tax system. This means different portions of your income are taxed at different rates.
What Is a Progressive Tax System?
Your income is divided into chunks that are taxed at increasing rates as your earnings rise. This doesn’t mean all your income is taxed at your top rate—just the portion that falls in that bracket.
Federal Income Tax Bracket Table for 2024
Tax Rate | Single Filers | Married Filing Jointly |
10% | Up to $11,600 | Up to $23,200 |
12% | $11,601 to $47,150 | $23,201 to $94,300 |
22% | $47,151 to $100,525 | $94,301 to $201,050 |
24% | $100,526 to $191,950 | $201,051 to $383,900 |
32% | $191,951 to $243,725 | $383,901 to $487,450 |
35% | $243,726 to $609,350 | $487,451 to $731,200 |
37% | Over $609,350 | Over $731,200 |
How Tax Brackets Work with the Standard Deduction
Your taxable income is calculated after subtracting the standard deduction. Only the income that remains is taxed using the brackets above.
Why Do I Owe Taxes? Common Pitfalls to Avoid
Many people are surprised by tax bills because of how withholdings are set up, especially when juggling multiple jobs or freelance work.
The Problem with Multiple Jobs or Side Gigs
Each employer withholds taxes as if that job were your only source of income. When combined, your actual income may push you into a higher bracket—but the right amount of taxes wasn’t withheld.
How Withholding Errors Lead to Tax Bills
For example, if you have two part-time jobs, each paying $20,000/year, the IRS sees $40,000. But both employers only withheld taxes as if you made $20,000—leaving a shortfall.
Real-Life Example: Freelance Work Without Withholding
Emily, a teacher and part-time freelance writer, earned $45,000 from her job and $10,000 from freelance gigs. Her W-2 job withheld taxes, but her freelance income had no withholdings. When she filed, she owed more than $1,000 in taxes she hadn’t planned for.
Tips for Adjusting Your W-4 to Stay on Track
Use the IRS Tax Withholding Estimator or speak with a tax pro to fine-tune your W-4 so your withholdings better reflect your total income.
Source: IRS Tax Withholding Estimator
Tax Credits That Could Lower Your Tax Bill
Unlike deductions, which reduce your taxable income, tax credits reduce your final tax bill dollar-for-dollar.
Common federal tax credits include:
- Earned Income Tax Credit (EITC) – For low-to-moderate income workers
- Child Tax Credit (CTC) – For parents or guardians of qualifying children
- American Opportunity Credit – For qualifying education expenses
Even if your taxable income seems high, some credits are refundable, which means they can increase your refund or reduce what you owe below zero.
How to Estimate Your Taxes Throughout the Year
These formulas provide a starting point for tax awareness—but they’re not a substitute for professional calculations.
Quick Formula to Estimate Your Taxable Income
Gross Income – Standard Deduction = Taxable Income
A Simple Ballpark Method to Estimate Federal Tax Owed
Taxable Income x Average Tax Rate = Approximate Federal Tax Owed
(Average tax rates for middle-income earners often range from 10% to 15%)
How to Use Your Pay Stub to Check Withholding
Take your YTD federal tax withheld and divide it by your estimated tax owed. If you’re falling short, talk to HR or adjust your W-4.
Don’t Forget About State Income Taxes
Federal taxes are only part of the story—state taxes can vary dramatically.
Nine states—like Florida, Texas, and Washington—have no income tax. Others, like California and New York, have higher state income tax rates that can impact your refund or overall tax burden.
Be sure to check with your state’s Department of Revenue or a tax pro to understand your state-specific obligations.
When to Talk to a Tax Professional About Your Situation
No blog post can replace personalized advice. When life changes or your finances grow complex, a tax expert can help you avoid costly mistakes.
Life Events That May Trigger a Tax Review
Marriage, divorce, home purchase, job changes, starting a business, or receiving large bonuses.
How a Tax Specialist Helps You Plan Ahead
They can help with estimated payments, maximizing deductions, and avoiding underpayment penalties.
What to Bring to Your Tax Appointment
Income documents, prior returns, a list of major financial events, and questions about planning.
HonorPoint Financial Solutions: Trusted Guidance Through Tax Season
At HonorPoint, we equip you with financial education and confidence—especially during tax time. While we don’t provide tax filing services, we help you ask the right questions and stay proactive about your financial future.
Our Approach to Empowering You with Financial Knowledge
We focus on judgment-free coaching that helps you understand your financial behavior and plan for the long term.
How We Help You Build Financial Confidence, Year-Round
Through debt management, mortgage readiness, and personalized strategy, our financial coaching gives you control over your financial story.
Book a Free Consultation with an Accredited Financial Counselor
Visit HonorPoint Financial Solutions to learn more or schedule your free consultation.
Final Reminder: This article is educational in nature and should not be taken as tax or financial advice. Everyone’s financial life is different. For personalized tax planning, please consult a certified tax professional or financial advisor.