Posted on 11/09/2023 3:57:13 PM PST by Libloather
The IRS on Thursday announced higher inflation adjustments for the 2024 tax year, potentially giving Americans a chance to increase their take-home pay next year.
The higher limits for the federal income tax bracket and standard deductions are intended to avoid a phenomenon known as "bracket creep," which happens when taxpayers are pushed into higher-income brackets even though their purchasing power is essentially unchanged due to high inflation.
The IRS makes such adjustments annually, but in times of inflation, the increases are more significant and impactful for taxpayers.
This year, the tax brackets are shifting higher by about 5.4%.
The higher thresholds where tax rates take effect could mean savings for millions of workers across all income brackets.
Here are the changes unveiled by the IRS. The inflation-adjusted elements will apply to the 2024 tax year, meaning returns filed in 2025.
The standard deduction, which reduces the amount of income you must pay taxes on, is claimed by a majority of taxpayers.
It will rise to $29,200, up from $27,700 in 2024 for married couples filing jointly, amounting to a 5.4% bump. For individuals, the new maximum will be $14,600 for 2024, up from $13,850, the IRS said.
Heads of households will see their standard deduction jump to $21,900 in 2024, up from $20,800.
(Excerpt) Read more at foxbusiness.com ...
Let your sense of satisfaction in saving the planet be your reward! /s
I’m sure raising the brackets higher by 5.4% will be offset somewhere else by 30% and Biden will say he saved us 5.4%, GOP will say he screwed us by 30%, both will claim victory and then they’ll pass an omnibus bill to run the government by borrowing another $1.5 trillion and both will claim they reduced the deficit which to normal people means they bounced a check and also have to pay the overdraft fee.
The definition of insanity continues to win.
We need a movie do over.
That was major do over.... Fxcking fingers don’t work right.
isn’t SSI COLA 3.2%?
Marxist Dems need more money to fund the destruction of America.
Looks like a tax increase is buried in all that rubric about standard deductions
“ no one making under 400,000 will pay a PENNY in increased taxes!”
Joe Biden
Tax brackets for single individuals:
The IRS is increasing the tax brackets by about 5.4% for both individual and married filers across the different income spectrums. The top tax rate remains 37% in 2024.
10%: Taxable income up to $11,600
12%: Taxable income over $11,600
22%: Taxable income over $47,150
24%: Taxable income over $100,525
32%: Taxable income over $191,950
35%: Taxable income over $243,725
37%: Taxable income over $609,350
Which is worse. The J6 protest or this? Say, this.
EXACTLY- SCREW THE SENIORS
Buying votes for 2024 general election! Democrats have a history of raising taxes not reducing them.
“The definition of insanity continues to win.”
It is not insanity. It is calculated.
I won’t say much. But when REDACTED happens because REDACTED, in spite of REDACTED, the tax code is theft of the working class.
Expecting audit in 3,2,1.
TLDR: the workers are stupid to work while the takers are living like the Dickens’ Ghost of Christmas present.
Ping for tomorrow
Thank you Mr. Reagan!
The biggest thing for most people is to keep it under that $191,000 switch where you get taxed from 24% to 32%. Thats the biggest percentage whammy that could hit the most people.
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000
NO! These are not tax increases... these are tax CUTS!
Well, actually designed to be tax neutral. They're increasing the amount you can earn to pay only 10% tax rate, and every rate. It's all based on the inflation rate. It keeps the government from being able to push us all into higher and higher % brackets just by inflating our dollars.
This was a GIFT from Ronald Reagan. And, it's a GOOD thing.
Deduct?
NOPE
Sorry Libloather, that’s the “breaks!”
(I know that you don’t own an EV, you are much wiser person.)
I remember filling out my taxes for the first time decades ago and thinking that this form makes no sense.
Made no sense either in 1954 when the Three Stooges made a movie.
The 3 Stooges 1954 - Income Tax Sappy
https://youtu.be/naMFoKP3zPk?t=278
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