The Internal Revenue Service announced on Thursday that the thresholds for income tax brackets, and the standard amount Americans can deduct, are both moving up.
The moves — two among several adjustments based on rising inflation — means that taxpayers will have to earn more money to qualify for higher income brackets and their correspondingly higher rates for tax year 2024.
The top rate of 37%, for instance, will apply to individuals with annual taxable income above $609,350 or to jointly filing married couples who earn more than $731,200. That’s a bump up from tax year 2023 (the taxes you’ll owe in April) for which the thresholds were $578,125 and $693,750, respectively.
The standard deduction — the set amount of money by which you can reduce the income you’re taxed on if you don’t itemize — will get a boost to $14,600 for single filers in 2024, up from $13,850 in 2023. The deduction for married couples filing jointly jumps from $27,700 to $29,200.
