IRS Adjusts 2024 Tax Brackets and Standard Deductions for Inflation

IRS increases income thresholds for tax brackets by 5.4% and standard deductions by over 5% for 2024 to counter inflation, potentially reducing tax bills for millions of Americans.

The IRS has adjusted the 2024 tax brackets and standard deductions for inflation, potentially reducing tax bills for millions of Americans.
The income thresholds for tax brackets have been increased by 5.4%, meaning individuals will need to earn more to qualify for higher tax brackets.
The standard deduction, which lowers taxable income, is increasing by over 5% in 2024. For individuals, it will be $14,600, and for married couples filing jointly, it will be $29,200.
The IRS is also increasing contribution limits by $500 for 401(k) and IRA plans and allowing an additional $150 in contributions to flexible spending accounts (FSAs).
The Earned Income Tax Credit for those with low to moderate incomes is also increasing, from $7,430 in 2023 to $7,830 in 2024.