The Internal Revenue Service (IRS) announced this week the new federal income tax brackets and standard deductions for 2024.
Internal Revenue Service announced new federal income tax brackets and standard deductions. (Photo: Inquirer)
Increase of Federal Income Tax Brackets and Standard Deductions for 2024
The Internal Revenue Service (IRS) announced on Thursday the new federal income tax brackets and standard deductions for 2024. As per the announcement, the agency said that there will be a higher bracket in 2024 and they also boosted the income thresholds for each bracket.
In a published article in CNBC, there will be changes when a taxpayer applies for a 2024 return in 2025 and these are the following:
- The top rate of 37% applies to individuals with taxable income above $609,350
- Married couples filing jointly earning $731,200
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How the Federal Income Tax is Calculated?
According to an article published in CNN News, the federal income tax bracket shows how much one owes on each portion of their taxable income. It is calculated by ubtracting the greater of the standard or itemized deductions from your adjusted gross income.
Furthermore, there will also be an increase in standard deduction in 2024. It will increase from $27,700 in 2023 to $29,200 for married couples filing jointly. Single filers may claim $14,600, an increase from $13,850.
