The Internal Revenue Service (IRS) has officially announced the 2024 tax brackets, standard deductions, and other key tax updates that will impact taxpayers in the upcoming year. As reported by Forbes, these changes are designed to keep pace with inflation and provide relief to taxpayers. In this article, we will break down the key updates and what they mean for you.
2024 Tax Brackets
The IRS has announced new tax brackets for the 2024 tax year, which will apply to taxable income earned between January 1, 2024, and December 31, 2024. The new brackets are as follows:
10%: $0 to $11,600 (single) and $0 to $23,200 (joint)
12%: $11,601 to $47,150 (single) and $23,201 to $94,300 (joint)
22%: $47,151 to $100,525 (single) and $94,301 to $201,050 (joint)
24%: $100,526 to $191,950 (single) and $201,051 to $383,900 (joint)
32%: $191,951 to $243,725 (single) and $383,901 to $487,450 (joint)
35%: $243,726 to $609,350 (single) and $487,451 to $731,200 (joint)
37%: $609,351 and above (single) and $731,201 and above (joint)
Standard Deductions
The standard deduction for the 2024 tax year has also been increased. The new standard deductions are as follows:
Single: $14,050
Joint: $28,100
Head of Household: $21,200
Married Filing Separately: $14,050
Other Key Updates
In addition to the new tax brackets and standard deductions, the IRS has also announced other key updates, including:
Earned Income Tax Credit (EITC): The EITC has been increased to help low-to-moderate income working individuals and families.
Child Tax Credit: The child tax credit has been increased to $3,000 per child, with a maximum credit of $6,000 for two or more children.
Alternative Minimum Tax (AMT): The AMT exemption has been increased to $81,900 for single taxpayers and $123,700 for joint taxpayers.
The 2024 tax updates announced by the IRS are designed to provide relief to taxpayers and keep pace with inflation. It's essential to understand how these changes will impact your tax situation and plan accordingly. Whether you're a individual taxpayer or a business owner, it's crucial to stay informed about the latest tax updates and seek professional advice if needed. By staying on top of these changes, you can minimize your tax liability and maximize your refund.
For more information on the 2024 tax updates, visit the IRS website or consult with a tax professional. Stay ahead of the curve and make informed decisions about your tax strategy.
