The Internal Revenue Service (IRS) has announced that they will be implementing new income tax brackets for the 2024 tax years.
The tax brackets for the 2024 tax year will be adjusted for inflation as per the Tax Cuts and Jobs Act of 2017. This will ensure that taxpayers are not underpaid or overburdened with economic changes due to inflation.
It is important to note that the new tax brackets will apply to both individual and business tax filers. In general, the new tax brackets will affect those with a higher annual income.
For 2024, single taxpayers will be subject to a 10 percent tax rate on the first $9,825 of their taxable income, while for married individuals filing jointly, the 10 percent tax rate will apply to the first $19,650 of taxable income. For single filers, the top rate of 37 percent will apply to incomes that exceed $523,600. For married filers, any incomes exceeding $628,300 will be taxed at a rate of 37 percent.
The new tax brackets may be difficult to navigate for some taxpayers, so it’s important to seek guidance from a tax professional or accountant to ensure they are taking advantage of the most beneficial tax breaks available. Additionally, it’s important to use reputable sources to calculate the estimated taxes owed for the upcoming year.
Overall, the IRS is trying to keep up with economic shifts and ensure fair taxation across the board with these new income tax brackets for 2024. It’s important to familiarize yourself with these taxation changes now to avoid conflict and ensure that you are using the most up-to-date information for calculating your taxes.