How will 2024 IRS tax brackets affect you?

By: Manahil Ahmad
NorthJersey.com
USA Today Network - New Jersey

..... The IRS revealed updated federal income tax brackets and standard deductions for the upcoming tax year 2024, affecting returns field in 2025. The adjustments, unveiled on Thursday, [11/09/2023] showcase increased income, thresholds for each bracket and amplified standard deduction figures.
..... For the 2024 tax year, the highest tax rate of 37% will apply to individuals reporting a taxable income surpassing $609,350.
..... Similarly married couples filing jointly and earning over $731,200 will fall under this top tax bracket.
..... The standard deduction, a key consideration for many taxpayers, will see a boost in 2024.
..... For married couples filing jointly, the standard deduction elevates to $29,200, marking a rise form the 2023 figure of $27,700. single filers, on the other hand, will be eligible to claim 414,600, showcasing an increase form the previous $13,850.
..... Despite the maintenance of the actual tax percentage rates as per the tax Cuts and Jobs Act of 2017 until 2025, the income thresholds within each bracket undergo annual adjustments to accommodate inflation.
..... The alterations announced by the IRS on Thursday [11/09/2023] specifically pertain to the tax year 2024, with returns due by April 2025.

Tax rates for single incomes

..... For single filers in 2024, the income brackets and corresponding tax percentages are as follows:
* Income less than $11,600 will incur a 10% tax on the taxable income.
* 12% for incomes over $11,600.
* 22% for incomes over $47,150.
* 24% for incomes over $100,525.
* 32% for incomes over $191,950.
* 35% for incomes over $243,725.

Tax rates for married couples

..... For married individuals in 2024, the tax brackets will differ as follows:
* Income up to $23,200 will be taxed at a rate of 10% of the taxable income.
* 12% for income over $23,500.
* 22% for incomes over 94,300.
* 24% for incomes over $201,050.
* 32% for incomes over $383,900.
* 35% for incomes over $487,450.
..... The adjustments in these brackets and deductions provide taxpayers with updated guidance on their potential tax liabilities for the forthcoming year.

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