The IRS annually announces the inflation adjustments for the tax provisions to implement a progressive tax system. The 2024 tax adjustments will apply to 2025 tax returns. In the article, we have briefly discussed the 2024 tax brackets and other tax provisions.
IRS Tax Brackets 2024
The IRS has unveiled the tax brackets for 2024, which will apply to the tax returns you will file in 2025. The IRS has created tax brackets to execute a progressive tax system.
The adjustments are made by the agency every year due to the change in inflation and to avoid bracket creep. Bracket Creep happens when people with higher incomes pay taxes at a higher rate as inflation changes and their income increases.
The IRS has created the seven tax rates in 2024. The tax bracket keeps you in a certain bracket based on your income and helps you understand how much you have to pay in taxes annually.
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The 2024 tax brackets announced by the IRS due in April 2025 are as follows:
- The higher income rate of 37% will apply to taxpayers with income above $609,350 when filing taxes individually and income above $732,200 for taxpayers with filing status of married filing jointly.
| Tax rate | Single | Married Filing jointly | Married filing separately | Head of household |
| 10% | $0 to $11, 600 | $0 to $23,200 | $0 to $11, 600 | $0 to $16,550 |
| 12% | More than $11600 but not more than $47150 | More than $$23,200 but not more than $94,300 | More than $11600 but not more than $47150 | More than $16.550 but not more than $63,100 |
| 22% | More than $47150
but not more than $100, 525 |
More than $94,300 but not more than $201,050 | More than $47150
but not more than $100, 525 |
More than $63,100 but not more than $100,500 |
| 24% | More than $100,525 but not more than $191,950 | More than $201,050 but not more than $383,900 | More than $100,525 but not more than $191,950 | More than $100,500 but not more than $191,950 |
| 32% | More than $191,150 but not more than $243,725 | More than $383,900 but not more than $487,450 | More than $191,150 but not more than $243,725 | More than $191,950 but not more than $243,700 |
| 35% | More than $243,725 but not more than $609,350 | More than $487,450 but not more than $732,200 | $243,725 but not more than $365,600 | More than $243,700 but not more than $609,350 |
| 37% | Not more than $609,350 | Not more than $731,200 | Not more than $365,600 | Not more than $609,350 |
2024 Standard Deduction
According to the IRS, the standard deduction will rise by $750 for single tax return filers and $1500 for joint filers couples. The standard deduction is a portion of your income that is not taxable, which can reduce your tax returns. The agency adjusts it annually due to the cost of living and the amount of standard deduction depends on filing status and other criteria.
The standard tax deduction is as follows for 2024:
| Filing Status | Amount |
| Single | $14,600 |
| Married Filing jointly | $29,200 |
| Head of household | $21,900 |
The deduction amount for married seniors is $1,550 and for unmarried seniors is $19,50.
2024 Alternative Minimum Tax Exemption
The AMT exemption applies to taxpayers with high economic income and sets a limit to the benefits. This tax system makes sure that taxpayers at least pay a minimum amount of tax. The 2024 tax provisions bring the following change to the AMT exemption thresholds:
| Tax filing status | Exemption begins to phase out |
| Married but filed joint returns | $1,218,700 |
| Unmarried or Single filers | $609,350 |
In comparison to 2023 exemptions, the amount for married couples who filed jointly was phased out at $1,156,300, and for individuals %578,150.
Tax provisions unaffected in 2024
Certain tax provisions are the same as for 2023, let’s see what are they:
- The personal exemption that reduced the taxable income remains at 0, the same as the previous year.
- The Lifetime Learning credit has been removed gradually for taxpayers with a modified adjusted gross income of $80,000 and $160,000 for joint returns.
- There is no limitation on itemized deductions as it is removed by the Tax Cuts and Jobs law.
The tax brackets and tax provisions will help you in knowing the amount you will pay to the IRS, that’s why, it is important to know about these announced changes to plan your finances accordingly.