IRS Announces Tax Inflation Adjustments for 2024

Coins and the word Tax spelled out with bright red letters on dollar bills

The Internal Revenue Service announced inflation adjustments on Thursday for more than 60 tax provisions for tax year 2024.

Revenue Procedure 2023-34 sets out the tax year 2024 adjustments, which generally apply to tax returns filed in 2025.

The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023.

For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023. For heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.

For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly). The other rates are:

35% for incomes over $243,725 ($487,450 for married couples filing jointly).
32% for incomes over $191,950 ($383,900 for married couples filing jointly).
24% for incomes over $100,525 ($201,050 for married couples filing jointly).
22% for incomes over $47,150 ($94,300 for married couples filing jointly).
12% for incomes over $11,600 ($23,200 for married couples filing jointly).

The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).

The Alternative Minimum Tax exemption amount for tax year 2024 is $85,700 and begins to phase out at $609,350. This amount is $133,300 for married couples filing jointly, for whom the exemption begins to phase out at $1,218,700.

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