Among the notable changes is the increase in the standard deduction for various filing categories.
The Income Tax Bracket landscape for the 2024 tax year is set to change, as the Internal Revenue Service (IRS) has made adjustments due to annual inflation
For married couples filing jointly, the standard deduction sees a boost to $29,200, a $1,500 increase from the previous tax year. Single taxpayers and married individuals filing separately will witness a rise to $14,600, up by $750. Heads of households, on the other hand, will have a standard deduction of $21,900, marking an increase of $1,100.
The Income Tax Brackets for the 2024 tax year maintain the top tax rate at 37% for individual single taxpayers earning over $609,350 ($731,200 for married couples filing jointly). Other rates include 35%, 32%, 24%, 22%, and 12%, with the lowest rate being 10% for certain income brackets.
Other adjustments have been made
In addition to these changes, various other adjustments have been made, affecting items such as the Alternative Minimum Tax exemption, Earned Income Tax Credit, transportation fringe benefits, health flexible spending arrangements, and more.
Taxpayers need to be aware of these modifications as they navigate the upcoming tax season, keeping in mind the nuances within the Income Tax Bracket framework for the 2024 tax year.
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