Standard Deduction Increase in 2024
The IRS has adjusted standard deduction amounts for 2024 to account for inflation across all filing statuses. Here are the new amounts:
- Single filers and married filing separately: $14,600
- Married filing jointly: $29,200
- Heads of household: $21,900
Key 2024 Income Tax Exemptions and Deductions
In 2024, several key exemptions and deductions are increasing:
- Standard Deduction: Increases across all filing statuses to allow taxpayers to keep more income.
- Child Tax Credit: Rises to $3,000 per child.
- Additional Standard Deduction for Seniors: Taxpayers 65 or older can claim an additional deduction of $1,550.
2024 Tax Brackets and Rates
The seven income tax brackets in 2024 are:
- 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your bracket depends on your taxable income and filing status.
Alternative Minimum Tax (AMT) Update
The AMT exemption for 2024 is $85,700 for singles and $133,300 for married couples filing jointly. The AMT ensures wealthy individuals pay a minimum amount of tax.
For 2024, long-term capital gains and dividends have a 0% tax rate if taxable income is below specific thresholds based on filing status.