Planning ahead is something that could help you save money. While there are some taxpayers who always miss IRS deadlines, others prefer to be ahead and know what lies in store for them.
The IRS has just revealed the new income tax brackets. These changes have to do with the current inflation. So, the Internal Revenue Service is just trying to adjust taxes to the current cost of living and inflation.
| Important links |
|---|
| Food Stamps |
| PAYMENTS |
| stimulus checks |
| SSDI |
Standard deductions are also an interesting thing to take into account since there have also been some updates. Bear in mind that these measures will come into effect for the 2024 tax year said the IRS.
What are the new income tax brackets the IRS set?
For your information, there are 7 different tax rates in the United States. Thus, this federal income tax code includes tax rates of between 10% and up to 37%. The amount of money you will pay will depend on the tax bracket you are in.
By now, you must be wondering what is the income for the top tax rate. If you are a single taxpayer and your income is over $609,350, your tax rate will be 37% in 2024. Married couples in the same situation have a marginal rate of $731,200.
The next tax rate the IRS has set is 35%. This will be for income over $487,450 if you are a married couple and file jointly. Single taxpayers have a tax rate of 35% if their earnings are more than $243,725.
After the 35%, the next tax rate is 32%. Joint filers with earnings of more than $383,900 will be in this 32% tax rate. Single filers with earnings over $191,950 will have the same tax rate.
What is the new income the IRS set for a 24% tax rate?
The 24% tax rate will be for those taxpayers with incomes higher than $201,050 if you are a married couple who files jointly. Single filers with earnings over $100,525 have a 24% tax rate too.
The next step will be the 22% tax rate. If your income is over $47,150 (single filer) or $94,300 (married couple), this will be your tax rate. There are still two more changes in the tax rates the IRS has modified.
The 12% will be for incomes over $23,200 if you are a married couple and file jointly. Single taxpayer will be in this tax rate if their earnings are more than $11,600.
Last but not least, the 10% tax rate. Undoubtedly, this will be the lowest rate. This will be your tax rate if your earnings are below $11,600 (single filers) or $23,200 (married filing jointly). Make sure you pay the right amount of taxes to the IRS.