Changes to Tax Rates and Brackets: Preparing for Your 2024 Tax Returns
The tax brackets and rates have been adjusted for inflation, and it’s important to understand these updates as you prepare your 2024 returns.
Tax Brackets, Rates, and Filing Statuses
The U.S. tax system still consists of seven tax brackets, determining the percentage of your federal income that is taxable. The brackets for 2024 are:
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The U.S. tax system still consists of seven tax brackets, determining the percentage of your federal income that is taxable. The brackets for 2024 are:
Tax Rate Single Filers Married Filing Jointly Married Filing Separately Head of Household 10% $0 – $11,600 $0 – $23,200 $0 – $11,600 $0 – $16,550 12% $11,601 – $47,150 $23,201 – $94,300 $11,601 – $47,150 $16,551 – $63,100 22% $47,151 – $100,525 $94,301 – $201,050 $47,151 – $100,525 $63,101 – $100,500 24% $100,526 – $191,950 $201,051 – $383,900 $100,526 – $191,950 $100,501 – $191,950 32% $191,951 – $243,725 $383,901 – $487,450 $191,951 – $243,725 $191,951 – $243,700 35% $243,726 – $609,350 $487,451 – $731,200 $243,726 – $365,600 $243,701 – $609,350 37% $609,351+ $731,201+ $365,601+ $609,351+ Standard Deductions for 2024
Filing Status Standard Deduction Single $14,600 Married Filing Separately $14,600 Married Filing Jointly $29,200 Head of Household $21,900 Final Thoughts
These tax changes impact how much you owe or get refunded. With higher standard deductions and inflation adjustments, some taxpayers may see tax relief, while others may need to plan for a different tax burden. What are your thoughts on these updates?
In our next article, we’ll dive into business tax changes and deductions!
