Rachel Schilke is a breaking news reporter at the Washington Examiner. Originally from Frankfort, Illinois, she graduated from the University of Iowa in May 2022 and served as a managing editor at the Daily Iowan with a focus on crime and courts and local government. Follow her on X: @rachel_schilke.
The IRS announced new income limits for seven tax brackets on Thursday, providing some taxpayers breaks for 2024.
The tax brackets are being adjusted upward by 5.4% using a formula based on the consumer price index, which tracks the costs of goods and services purchased by consumers, per the IRS. The 2024 limits come after the agency historically expanded the tax brackets by 7% last year due to 2022's high inflation.Tax brackets will be increased by 5.4% for each type of filer for 2024, including those filing separately or as married couples.
For married couples filing jointly for tax year 2024, the standard education deduction rises to $29,200, a $1,500 increase from tax year 2023. For single taxpayers and married people filing separately, the standard deduction rises to $14,600, a $750 increase from 2023. For heads of household, the standard deduction will rise to $21,900, a $1,100 increase from 2023.
The top tax rate for 2024 will remain at 37% for individual single taxpayers with incomes greater than $609,350, or $731,200 for married couples filing jointly. The lowest rate is 10% for incomes of single individuals of $11,600 or less, or $23,200 for married couples filing jointly.The IRS increased other tax policies too. The 2024 tax year maximum Earned Income Tax Credit amount is $7,830 for qualifying taxpayers who have three or more qualifying children, an increase of from $7,430 in 2023.
IRS Income Limits Tax Brackets 2024 Consumer Price Index
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
IRS announces new income tax brackets for 2024The IRS on Thursday announced higher federal income tax brackets and standard deductions for 2024. Here’s what taxpayers need to know.
Read more »
IRS Introduces New Income Limits for Tax Brackets in 2024The IRS is rolling out new income thresholds for its seven tax brackets, boosting the limits to reflect inflation this year.
Read more »
IRS Announces Increase in Standard Deduction for 202490% of people use the standard deduction to lower their taxable income, IRS stats say.
Read more »
Standard deductions for 2024 taxes will jump 5.4% due to inflation90% of people use the standard deduction to lower their taxable income, IRS stats say.
Read more »
IRS Announces Higher Inflation Adjustments for 2024 Tax YearThe IRS on Thursday announced the new income limits for the different tax brackets as still-high inflation continues to squeeze Americans financially.
Read more »
IRS Announces Inflation Adjustments for Capital Gains Taxes in 2024The tax rates remain the same for the sale of assets that grow in value, but the income thresholds will push higher
Read more »