2024 Tax Changes
 

Annual inflation adjustments for TY 2023 and 2024(PDF)

Income Tax Bracket
There income brackets for marginal tax rates were adjusted to reflect inflation for 2024 returns. Here’s how they shake out:

37% for individual taxpayers with incomes over $609,350, and $731,200 for married couples filing jointly
35% for individual taxpayer incomes over $243,725, and $487,450 for married couples filing jointly
32% for individual taxpayer incomes over $191,950, and $383,900 for married couples filing jointly
24% for individual taxpayer incomes over $100,525, and $201,050 for married couples filing jointly
22% for individual taxpayer incomes over $47,150, and $94,300 for married couples filing jointly
12% for individual taxpayer incomes over $11,600, and $23,200 for married couples filing jointly
10% for individual taxpayer incomes of $11,600 or less, and $23,200 or less for married couples filing jointly
 

Standard Tax Deduction
The standard deduction rose $1,500 from 2023 to $29,200 for married couples filing jointly. Single taxpayers and married individuals filing separately can take a standard deduction of $14,600, an increase of $750. Heads of households get a $21,900 standard deduction, up $1,100.

Contribution Limits for Retirement Plans
The most an employee can contribute to a 401(k) plan in 2024 will be $23,000, a $500 increase from 2023. This limit also applies to 403(b) and most 457 plans, as well as the Thrift Savings plan for federal employees. For people with Individual Retirement Accounts, the limit was raised to $7,000 from $6,500. The IRA catch-up contribution limits to retirement plans for people aged 50 and over were not changed.

Gift Tax Limit
The amount of the annual exclusion for gifts rises $1,000 for 2024, from $17,000 to $18,000.

Tax Credit and Deduction Changes
In 2024, mostly higher income ranges will be used to determine a taxpayer’s eligibility to deduct IRA contributions, contribute to Roth IRAs and claim the Saver’s Credit. Here are details:

• Ranges for phasing out IRA contribution deductibility apply based on filing status and whether the taxpayer or a spouse is covered by a workplace retirement plan as follows: Click Here
• Roth IRA contributions are also subject to income-based phase-outs and most of those ranges increased in 2024 as well. Phase-out ranges vary based on filing status as follows: Click Here
• The income limit for the Saver’s Credit is based on based on filing status and is adjusted as follows: Click Here