The IRS said on Thursday the agency would be increasing federal income tax brackets and standard deductions for 2024. The income threshold for each bracket was bumped up, to start things off with new ranges for the next tax season.
The Internal Revenue Service is making the move to adjust for inflation.
The IRS will increase standard deductions to $29,200 for married couples who file jointly and $14,600 for single filers. For 2023 the standard deduction was $27,700 for married couples filing together and $13,850 for single taxpayers.
The alternative minimum tax and the estate tax exemption will also see changes, which are included in dozens of other updates. In those updates will now be a higher earned income tax credit which will now put the write-off amount up to a maximum of $7,830 for low-to-moderate-income filers.
Working Americans will now be able to put $3,200 into flexible spending accounts.
Other rate updates from the IRS
- 35% for incomes over $243,725 ($487,450 for married couples filing jointly)
- 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
- 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
- 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
- 12% for incomes over $11,600 ($23,200 for married couples filing jointly)
The IRS says the personal exemption for the 2024 tax year will remain at 0, which is the same as it was in 2023.
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