After scorching hot inflation pushed income tax brackets and a widely-used tax deduction to their largest single-year increase in decades during 2023, another round of sizable adjustments are coming next year.
Yet the 2024 increases will not be as steep for tax brackets and the standard deduction.
The ranges on income tax brackets increased by approximately 5.4% for 2024 returns, numbers from the the Internal Revenue Service showed Thursday.
The ranges increased by approximately 7% when the IRS announced its inflation adjustments last year for 2023 returns. That was the largest increase in decades, according to Robert McClelland, senior fellow at the Tax Policy Center.
For both 2023 and 2024, the tax code’s sizeable inflation adjustments reflect “a bad thing: that your paycheck buys less than it used to,” McClelland said.
Each year, the IRS adjusts tax brackets, the standard deduction and approximately 60 other tax provisions that are designed to adjust higher for inflation.
The larger 2024 standard deduction is $14,600 for individuals, up $750 from this year’s amount. The standard deduction is $29,200 for married couples filing…
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