2024 IRS Tax Brackets and Standard Deduction Adjustments

The Internal Revenue Service (IRS) has announced its annual inflation adjustments for the 2024 tax year, impacting federal tax brackets and the standard deduction. These changes are crucial for taxpayers as they prepare for the upcoming tax season.

The IRS has adjusted the income thresholds for all seven tax brackets by approximately 5.4%, slightly lower than the previous year’s adjustment of 7%. This adjustment is intended to prevent "bracket creep," where inflation pushes taxpayers into higher tax brackets, increasing their tax burden without a corresponding increase in real income. For 2024, single filers will see the 10% bracket apply to incomes up to $11,550, and the 37% bracket will start at $617,750. Meanwhile, married couples filing jointly can deduct up to $29,200 as the standard deduction.

These changes are part of the IRS's broader strategy to align tax provisions with economic realities, ensuring fairness and consistency in the tax system. Taxpayers are advised to review these updates carefully to understand how they may affect their tax obligations in 2024.

Source: ​https://www.nerdwallet.com/article/taxes/tax-changes