IRS Unveils 2024 Income Tax Brackets with Enhanced Deductions and Credits!
In a recent announcement, the IRS has rolled out the income tax brackets for the year 2024, bringing some welcome news for taxpayers. The income thresholds for each bracket have been raised, affecting returns filed in 2025. For the top bracket, individuals with taxable income over $609,350 and married couples filing jointly with earnings exceeding $731,200 will face a 37% rate.
Additionally, the standard deduction has seen a boost. Married couples filing jointly can now claim $29,200, up from $27,700 in the previous year, while single filers can now claim $14,600, an increase from $13,850.
The IRS has not stopped there – numerous other tax provisions have also been adjusted. This includes the alternative minimum tax, a parallel system aimed at higher earners, as well as the estate tax exemption for wealthier families.
For low- to moderate-income filers, there’s good news too. The earned income tax credit has been increased, allowing for a maximum write-off of $7,830. Additionally, employees can now contribute $3,200 into health flexible spending accounts.
These updates are set to have a positive impact on taxpayers, providing them with increased deductions and credits, ultimately resulting in potential savings on their tax bills for the year 2024.
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