Tax Brackets for 2023 and 2024
Here are the tax brackets for 2023 (taxes filed in 2024): Single filers. Tax Rate: $172,623.50 plus 37% of the amount over $578,100.
Standard vs. Itemized Deductions
Deciding how to take your deductions — that is, how much to subtract from your adjusted gross income, thus reducing your taxable income — can make a huge difference in your tax bill.
The standard deduction for 2024 will be $29,200 for married couples filing jointly. For single individuals, it will be $14,600. For heads of households, it will increase to $21,900.
With higher standard deductions, fewer taxpayers may choose to itemize. Those who do itemize for 2024 will see higher income phaseout thresholds for exemptions.
2024 Personal Allowance and Exemptions
The Personal Allowance for the 2024-2025 tax year is £12,570.
For 2024, the maximum HSA contribution for somebody with self-only coverage under a high deductible health plan is $4,150. The limit for somebody with family coverage under such a plan is $8,300.
The additional standard deduction for those 65 or older will also rise. A single taxpayer 65 or older can claim $16,550 in 2024.
If claimed as a dependent, the 2024 standard deduction is limited to the greater of $1,300 or earned income plus $450.
Inflation and Tax Implications for 2024
Starting in calendar year 2023, the Inflation Reduction Act reinstates the Hazardous Substance Superfund financing rate.
This means that for tax year 2023 (the taxes you file in 2024) the existing 1099-K reporting threshold will remain in effect.
The IRS is also adjusting federal income tax brackets for 2024. Rates rise at higher incomes, and brackets overall reflect 2023’s high inflation.