The standard deduction for married couples filing jointly rises to $29,200 and will be $14,600 for singles. File Photo by Kevin Dietsch/UPI | License Photo
Nov. 9 (UPI) — The IRS announced new adjusted-for-inflation income tax brackets and deductions for tax year 2024.
The standard deduction for married couples filing jointly rises to $29,200 and will be $14,600 for singles.
The changes will be for income tax returns filed in 2025.
The seven new brackets for married couples range from taxable income of $23,200 up to incomes over $731,200 a year.
For single heads of households, there will be seven levels ranging from $16,550 a year up to over $609,350.
The seven new tax brackets starting in 2024 for married couples start at 10% of taxable income for income less than $23,200.
For couples earning between that amount and up to $94,300, the tax owed will be $2,320 plus 12% of taxable income over $23,500.
The new top tier for income over $731,200 a year will be $196,669.50 plus 37% of the excess above $731,200.
For single filers the lowest bracket will be 10% of taxable income up to $16,500. The top bracket is income over $609,350.
The changes should give taxpayers a break, with the standard deduction rising from 2023’s $27,700 to $29,200 for married couples.
It will go up for single heads of households from $13,350 in 2023 to $14,600 in 2024.
The alternative minimum tax exemption for 2024 will be $85,700 or $133,000 for married couple filing jointly.
Earned income tax credit increases to $7,830. There will be no limitations on itemized deductions.
There will also be a higher earned income tax credit for 2024. The tax write-off for lower-income taxpayers rises to $7,830.