The IRS issued its annual inflation adjustments for more than 60 items that will apply for the 2024 tax year. The adjustments outlined in Revenue Procedure 2023-43 include changes to the standard deduction amounts, the marginal income tax rates, the alternative minimum tax exemption, the earned income tax credit and many other items. Some of the more noteworthy adjustments are listed in the sections that follow.
Standard deduction
| Filing status | 2024 amount | 2023 amount |
|---|---|---|
| Single and married filing separately | $14,600 | $13,850 |
| Married filing jointly | $29,200 | $27,700 |
| Head of household | $21,900 | $20,800 |
Marginal tax rates
Single
| 2024 taxable income | Marginal tax rate |
|---|---|
| $11,600 or less | 10% |
| $11,601 to $47,150 | 12% |
| $47,151 to $100,525 | 22% |
| $100,526 to $191,950 | 24% |
| $191,951 to $243,725 | 32% |
| $243,726 to $609,350 | 35% |
| Over $609,350 | 37% |
Married filing jointly
| 2024 taxable income | Marginal tax rate |
|---|---|
| $23,200 or less | 10% |
| $23,201 to $94,300 | 12% |
| $94,301 to $201,050 | 22% |
| $201,051 to $383,900 | 24% |
| $383,901 to $487,450 | 32% |
| $487,451 to $731,200 | 35% |
| Over $731,200 | 37% |
Head of household
| 2024 taxable income | Marginal tax rate |
|---|---|
| $16,550 or less | 10% |
| $16,551 to $63,100 | 12% |
| $63,101 to $100,500 | 22% |
| $100,501 to 191,950 | 24% |
| $191,951 to $243,700 | 32% |
| $243,701 to $609,350 | 35% |
| Over $609,350 | 37% |
Married filing separately
| 2024 taxable income | Marginal tax rate |
|---|---|
| $11,600 or less | 10% |
| $11,601 to $47,150 | 12% |
| $47,151 to $100,525 | 22% |
| $100,526 to $191,950 | 24% |
| $191,951 to $243,725 | 32% |
| $243,726 to $365,600 | 35% |
| Over $365,600 | 37% |
Alternative minimum tax exemption
| Filing status | Exemption amount | Phaseout threshold | Complete phaseout |
|---|---|---|---|
| Single | $85,700 | $609,350 | $952,150 |
| Married filing jointly | $133,300 | $1,218,700 | $1,751,900 |
| Married filing separately | $66,650 | $609,350 | $875,950 |
| Estates and trusts | $29,900 | $99,700 | $219,300 |
Other notable changes for 2024
- Annual exclusion for gifts: $18,000, up from $17,000 for 2023
- Maximum earned income tax credit: $7,830 for qualifying taxpayers with three or more qualifying children, increased from $7,430 for 2023
- Monthly limitation for the qualified transportation fringe benefit and monthly limitation for qualified parking: $315, a $15 increase from 2023
- Limitation on employee salary reductions for contributions to health flexible spending arrangements: $3,200
- Basic exclusion for estates: $13,610,000, up from $12,920,000 for 2023
- Foreign earned income exclusion: $126,500, up from $120,000 for 2023
To get all of the updated information you’ll need for tax season 2024, our upcoming webinar, Are You Ready for Tax Season?, will provide you with updates on key changes in tax laws for 2023, including insights on energy credits from the IRS under the 2022 Inflation Reduction Act. This session will equip you to accurately prepare your clients’ returns and effectively handle employee retention credit (ERC) claims. Register for the live or on-demand webinar at natptax.com/webinars.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.