The IRS is making changes to over 60 tax provisions for 2024, including a 5% increase to the standard deduction. Not everybody pays the same amount of taxes. The IRS determines how much you'll pay each year using a graduated-rate income tax system. This year, the lowest rate is 10%, for single-filing individuals who make up to $11,600 in 2024. This is up from a cutoff of $11,000 for 2023. The highest rate is 37%, for single-filing individuals who make over $609,350 (up from $578,125 last year). Graduated tax brackets are income-based and determine how much each portion of your earnings are taxed. The first $11,600 of a filer's income is taxed at 10%. The next $35,500 is taxed at 12%, and so on. The standard deduction is a predetermined amount of income that isn't taxed by the federal government. Alternatively, you can itemize your deductions to potentially save more than the standard deduction; however, after a tax overhaul in 2017, the vast majority of taxpayers choose to take the standard deduction. For single filers, the standard deduction for 2024 will be $14,600, up from $13,850 this year. For married couples filing jointly, the standard deduction will be $29,200. For more information on inflation adjustments, go to the IRS website IRS.gov.
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