By Ryan Ermey

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The Internal Revenue Service announced on Thursday that the thresholds for income tax brackets, and the standard amount Americans can deduct, are both moving up.

The moves — two among several adjustments based on rising inflation — means that taxpayers will have to earn more money to qualify for higher income brackets and their correspondingly higher rates for tax year 2024.

The top rate of 37%, for instance, will apply to individuals with annual taxable income above $609,350 or to jointly filing married couples who earn more than $731,200. That’s a bump up from tax year 2023 (the taxes you’ll owe in April) for which the thresholds were $578,125 and $693,750, respectively.

The standard deduction — the set amount of money by which you can reduce the income you’re taxed on if you don’t itemize — will get a boost to $14,600 for single filers in 2024, up from $13,850 in 2023. The deduction for married couples filing jointly jumps from $27,700 to $29,200.

Here’s how the new brackets will look for single filers and married couples filing jointly.

Marginal tax brackets for tax year 2024

Married filing jointly

The table shows the income brackets for married couples filing jointly for the 2024 tax year.

Table with 2 columns and 7 rows.

$0 to $23,200 10% of the taxable income

$23,201 to $94,300 $2,320

Plus 12% of the amount over $23,200

$94,301 to $201,050 $10,852
Plus 22% of amount over $94,300

$201,051 to $383,900 $34,337
Plus 24% of amount over $201,050

$383,901 to $487,450 $78,221
Plus 32% of amount over $383,900

$487,451 to $731,200 $111,357
Plus 35% of amount over $487,450

$731,201 or more $196,669.50
Plus 37% of the amount over $731,200

Much more on link:
https://www.cnbc.com/2023/11/09/irs-announced-new-tax-brackets-for-2024.html