The IRS has figured out a way for us to hold on to more of our income to keep up with inflation. Yup, they made a positive out of a negative until they can correct the negative. Or something like that. For 2024, the standard deduction will rise to $29,200 for married couples filing jointly and to $14,600 for single filers.
Via The Washington Post:
The IRS unveiled new tax brackets and larger standard deductions for 2024, allowing most Americans to hold on to more of their income to keep up with inflation.
The standard deduction will rise to $14,600 for single taxpayers, a $750 increase, the agency announced Thursday. For married couples who file jointly, it will grow $1,500 to $29,200. People who file as head of household will see a $1,100 bump, to $21,900.
Changes to the standard deduction — which is used by filers who don't itemize their deductions to lower their taxable income — apply to 2024 earnings, so filers won't see them until they're doing their taxes in early 2025.
After record-high inflation last year, the Federal Reserve has succeeded in blunting price increases in recent months. But the consumer price index, which is tied to these tax changes, has continued to rise, if at a slower pace.
The IRS also raised thresholds for its seven tax brackets by 5.4 percent for 2024, meaning a single person will be able to earn $609,350 before being taxed at the highest tax rate of 37 percent.
This is more good news coming from the Biden administration, so expect a swift response from former President Donald Trump: But what about Hunter and the laptop? And we haven't talked about Benghazi in a while:(
And what about crooked Joe? Hey, is there anything in this for me?
