Millions of Americans could take home more pay in 2024 thanks to inflation adjustments to the tax code just announced by the IRS.
The changes to the standard deduction and individual income brackets, among other adjustments, in tax year 2024 will apply to tax returns filed in 2025.
Here are the new Marginal Tax Brackets for tax year 2024
If your taxable income is greater than:
$609,350 ($731,200 for married couples filing jointly)
$243,725 ($487,450 for married couples filing jointly)
$191,950 ($383,900 for married couples filing jointly)
$100,525 ($201,050 for married couples filing jointly)
$47,150 ($94,300 for married couples filing jointly)
$11,600 ($23,200 for married couples filing jointly)
Taking home more pay?
If you are married filing jointly and making $200k, you could save $4,000 per year with the move from the 24% to the 22% tax bracket.
If you are single making $45,000, you'll be in the 12% instead of 22% bracket and could save $4,500.
Consider putting that extra money towards your investment accounts. A monthly plan can help move you closer to your long-term goals.
If you don’t have an account, now is the time to start one. We’re here if you have any questions or want to discuss the benefits of contributing towards an investment plan. We can be reached at 215-579-5601 or email email@example.com.
As always, if you have any life changes or updates that you need us to attend to (i.e., new job, promotion, marriage, new baby or grandchild, etc.), please do not hesitate to contact us.
Stacy Brilliant, Chief Operating Officer