New 2024 Tax Brackets: Check If You’re Getting More Money
It’s a new year, and we have new 2024 tax brackets. That’s good news, because you could be getting more money, after the IRS’s annual inflation adjustments for tax year 2024. More money a good thing.
The IRS announced the annual inflation adjustments in November. Each year, they adjust tax brackets so that a “bracket creep” doesn’t happen, which is when inflation puts some taxpayers in a higher income tax bracket, even with no increase in real income. The “bracket creep” can also influence other factors, so the IRS tries to avoid it. Also, any of the changes that were announced as 2024 adjustments will apply to income tax returns filed in 2025.
Gobankingrates.com has listed the relevant tax changes for the 2024 tax year. They also state that standard deductions are going up.
Standard Deductions for 2024 Tax Year (via Gobankingrates.com):
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- “The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023.”
- “For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023”
- “For heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.”
As for tax brackets, Gobankingrates.com states, “For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).” In addition, the IRS increased the threshold for the tax year 2024 maximum Earned Income Tax Credit amount to $7,830. That only for qualifying taxpayers who have three or more qualifying children, up from $7,430 for tax year 2023.
The other rates are (via Gobankingrates.com):
- “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)”
- “10% for incomes of $11,600 or less ($23,200 or less for married couples filing jointly)”
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UNSPECIFIED LOCATION – NOVEMBER 11: (FILE PHOTO) Space Shuttle Challenger crew members gather for an official portrait November 11, 1985 in an unspecified location. (Back, L-R) Mission Specialist Ellison S. Onizuka, Teacher-in-Space participant Sharon Christa McAuliffe, Payload Specialist Greg Jarvis and mission specialist Judy Resnick. (Front, L-R) Pilot Mike Smith, commander Dick Scobee and mission specialist Ron McNair. The Challenger and its seven member crew were lost seventy three seconds after launch when a booster rocket failed. (Photo by NASA/Getty Images)
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BERLIN, GERMANY – NOVEMBER 09: A young woman peers through concrete slats among flowers left by other visitors at the Berlin Wall memorial at Bernauer Strasse on the 26th anniversary of the fall of the Berlin Wall on November 9, 2015 in Berlin, Germany. On November 9, 1989, East German border guards opened barriers at the Berlin Wall and allowed thousands of East Germans to cross into West Berlin, symbolically heralding the end of the division of Europe and the conclusion of the Cold War. Today politicians across Europe, even in Germany, are debating erecting border barriers of their own in order to stem the influx of migrants. According to the latest estimates Germany could receive up to 1.5 million migrants seeking asylum by the end of the year. (Photo by Sean Gallup/Getty Images)
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