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The IRS unveiled new tax brackets for 2024 that could allow millions of Americans to keep a higher portion of their paycheck amid high inflation.
These are the new tax brackets for single individuals:
- 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
These are the new brackets for couples filing jointly:
- 10%: Taxable income up to $23,200
- 12%: Taxable income over $23,200
- 22%: Taxable income over $94,300
- 24%: Taxable income over $201,050
- 32%: Taxable income over $383,900
- 35%: Taxable income over $487,450
- 37%: Taxable income over $731,200
The standard deduction, which reduces the amount of income you must pay taxes on, will also increase next year.
For married couples filing jointly, the standard deduction will rise to $29,200, a 5.4% increase from last year. For individuals, the standard deduction will increase to $14,600, while the standard deduction for heads of households will be set at $21,900.
A majority of Americans claim the standard deduction when filing their taxes.