The IRS has announced new tax brackets and standard deduction thresholds for 2024.
The adjustments and changes include a standard deduction of $14,600 for individuals and $29,200 for couples filing jointly, a higher bracket for top-income earners who must pay a 37% income tax, and a higher earned income tax credit.
Changes to the tax brackets have been enacted with inflation in mind, as the U.S. suffers from historically high inflation not seen in over four decades.
It is important to note that these changes apply to the 2024 tax year which will be filed in 2025, they do not apply to 2023 taxes which will be filed in Q1 of 2024.
Here is the latest information on the new tax brackets for the 2024 tax year, filed in 2025.
The IRS just announced new income tax brackets for 2024
The IRS announced higher federal income tax brackets and standard deductions for 2024 – CNBC pic.twitter.com/dix0mZOuuU
— Evan (@StockMKTNewz) November 9, 2023
IRS announced new tax brackets for 2024 today. Because no article I've seen showed how they compare to 2023, I decided to put them side-by-side in a table. Hope this helps. #taxes pic.twitter.com/6oTKI5JsnN
— Jack (@jackpullara) November 9, 2023
NBC News provided more info on the top brackets:
The agency has boosted the income thresholds for each bracket, applying to tax year 2024 for returns filed in 2025.
For 2024, the top rate of 37% applies to individuals with taxable income above $609,350 and married couples filing jointly earning $731,200.
Dr.Danish highlighted the new standard deduction: “The IRS has released higher federal tax brackets for 2024 to adjust for inflation. The standard deduction is increasing to $29,200 for married couples filing together and $14,600 for single taxpayers.”
🚨 IRS ANNOUNCES NEW INCOME TAX BRACKETS FOR 2024
The IRS has released higher federal tax brackets for 2024 to adjust for inflation.
The standard deduction is increasing to $29,200 for married couples filing together and $14,600 for single taxpayers.
Check out the new tax… pic.twitter.com/RN9NymN0DF
— Dr Danish (@operationdanish) November 10, 2023
Cancel your plans – new IRS 2024 federal tax bracket just dropped. #IRS #Finance #taxes pic.twitter.com/H6CTfLkSq4
— Patrick ✊🏻🇺🇦🕊 (@AlwaysBuzby) November 10, 2023
CBS News explained:
The IRS increased its tax brackets by about 5.4% for each type of tax filer for 2024, such as those filing separately or as married couples.
There are seven federal income tax rates, which were set by the 2017 Tax Cuts and Job Act: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
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