The Internal Revenue Service (IRS) is slated to begin accepting 2023 tax returns in late January as well, providing an early opportunity for individuals to file their taxes and April 15 as the tax deadline in 2024. (Photo: Real Simple)
Insight into IRS Updates, Income Brackets, and Deductions for Informed Tax Planning
As the year draws to a close and the excitement of the holiday season begins to ebb, many individuals are likely gearing up for the upcoming tax season. The customary rites of tax preparation bring forth a barrage of inquiries, prompting curious minds to seek answers to a myriad of fiscal uncertainties. This year, the dawn of tax season brings with it a fresh set of rules and regulations, signifying changes in income brackets, deductions, and contribution limits.
Key takeaways include the resolute declaration of April 15 as the tax deadline in 2024, with tax season commencing in late January. The Internal Revenue Service (IRS) is slated to begin accepting 2023 tax returns in late January as well, providing an early opportunity for individuals to file their taxes.
This year’s most notable changes encompass a 7% increase in income tax brackets for 2023 and an anticipated rise in 2024. Individual filers and married couples filing jointly will witness alterations in bracket percentages based on income thresholds. Moreover, the standard deduction has surged by approximately 7%, promising potential benefits for individuals and married couples filing jointly. For seniors, an additional standard deduction is available, enabling them to optimize their tax liabilities.
READ ALSO: Getting Ready For Taxes In 2024: How To Make Your Online IRS Account
Tax brackets 2023 (taxes due April 15, 2024)
|
Tax Rate |
Single |
Married filing jointly |
Married filing separately |
Head of household |
|---|---|---|---|---|
|
10% |
$0 to $11,000. |
$0 to $22,000. |
$0 to $11,000. |
$0 to $15,700. |
|
12% |
$11,001 to $44,725. |
$22,001 to $89,450. |
$11,001 to $44,725. |
$15,701 to $59,850. |
|
22% |
$44,726 to $95,375. |
$89,451 to $190,750. |
$44,726 to $95,375. |
$59,851 to $95,350. |
|
24% |
$95,376 to $182,100. |
$190,751 to $364,200. |
$95,376 to $182,100. |
$95,351 to $182,100. |
|
32% |
$182,101 to $231,250. |
$364,201 to $462,500. |
$182,101 to $231,250. |
$182,101 to $231,250. |
|
35% |
$231,251 to $578,125. |
$462,501 to $693,750. |
$231,251 to $346,875. |
$231,251 to $578,100. |
|
37% |
$578,126 or more. |
$693,751 or more. |
$346,876 or more. |
$578,101 or more. |
USA Today and Nerd Wallet provide a comprehensive guide to the approaching tax season and it includes extends to itemized deductions, retirement contributions, health savings account limits, and the income threshold for child tax credits. In-depth insights into filing statuses, refund strategies, and resources for tax-related queries underscore the comprehensive coverage of this informative piece.
Individuals are poised to navigate the fiscal landscape with acumen, ensuring that their tax-related decisions are informed and strategic. Navigating the intricacies of tax regulations has never been more crucial, and this incisive report equips readers with the knowledge and foresight to approach the 2024 tax season with confidence and clarity.
READ ALSO: Navigating IRS Payments: Key Reasons You Might Owe Money And Strategies For Tax Season
