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Key 2024 Inflation-Adjusted Tax Amounts for Individuals

The IRS recently announced the key 2024 inflation-adjusted federal tax amounts that will affect individual taxpayers. Most of the federal income tax rate bracket thresholds are about 5.4% higher than for 2023. That means that you can generally have about 5.4% more income next year without owing more to the federal government.


Standard Deduction

Here are the inflation-adjusted standard deduction numbers for 2024 for those who don’t itemize:

  • $14,600 if you’re single or use married filing separate status (up from $13,850 in 2023)

  • $29,200 if you’re married and file jointly (up from $27,700)

  • $21,900 if you’re a head of household (up from $20,800)


Older taxpayers and those who are blind are entitled to additional standard deduction allowances. In 2024 for those age 65 or older or blind, the amounts will be: $1,550 for a married taxpayer (up from $1,500 in 2023) and $1,950 for a single filer or head of household (up from $1,850 for 2023).


For an individual who can be claimed as a dependent on another taxpayer’s return, the 2024 standard deduction will be the greater of: $1,300 (up from $1,250 for 2023) or $450 (up from $400 for 2023) plus the individual’s earned income, not to exceed $14,600 (up from $13,850 for 2023).


Ordinary Income and Short-Term Capital Gains

Here are the 2024 inflation-adjusted bracket thresholds for ordinary income and net short-term capital gains:

SINGLES

MARRIED JOINT FILERS

HEAD OF HOUSEHOLD

10% TAX BRACKET

$0 to $11,600

​$0 to $23,200

$0 to $16,550

12% TAX BRACKET

$11,601 to $47,150

$23,201 to $94,300

​$16,551 to $63,100

22% TAX BRACKET

$47,151 to $100,525

$94,301 to $201,050

$63,101 to $100,500

24% TAX BRACKET

$100,526 to $191,950

$201,051 to $383,900

$100,501 to $191,950

32% TAX BRACKET

$191,951 to $243,725

$383,901 to $487,450

$191,951 to $243,700

35% TAX BRACKET

$243,726 to $609,350

$487,451 to $731,200

$243,701 to $609,350

37% TAX BRACKET

$609,351

$731,201

$609,351


Long-Term Capital Gains and Dividends

Here are the 2024 inflation-adjusted bracket thresholds for net long-term capital gains and qualified dividends:

SINGLES

MARRIED JOINT FILERS

HEAD OF HOUSEHOLD

0% TAX BRACKET

$0 to $47,025

$0 to $94,050

$0 to $63,000

15% TAX BRACKET

$47,026 to $518,900

$94,051 to $583,750

$63,001 to $551,350

20% TAX BRACKET

$518,901

$583,751

$551,351


Gift and Estate Tax

The annual exclusion for gifts made in 2024 will be $18,000 (up from $17,000 for 2023). That means you can give away up to $18,000 to as many individuals as you wish without incurring gift tax or using up any of your unified federal gift and estate tax exemption.


In 2024, the unified federal gift and estate tax exemption will be $13,610,000 (up from $12,920,000 for 2023). For gifts, the annual exclusion for gifts to a noncitizen spouse will be $185,000 (up from $175,000 in 2023).


 

This article only covers some of the inflation-adjusted tax amounts. There are others that may potentially apply, including: alternative minimum tax parameters, kiddie tax amounts, limits on the refundable amount of the Child Tax Credit, limits on the adoption credit, IRA contribution amounts, contributions to your company’s retirement plan and health savings account amounts. Various other inflation-adjusted amounts may affect your tax situation if you own an interest in a sole proprietorship or a pass-through business. Contact us with questions at vaas@vaasprofessionals.com.

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