01/25/2025
Tax Changes Happening in 2024
In response to inflation, the IRS has adjusted marginal tax brackets and the standard deduction for 2024. As a result of the changes, many Americans will be able to keep more of their 2024 income.
Other big changes include increases to the allowed contribution amounts for tax-advantaged retirement savings accounts.
You might see a slight increase in your paychecks, depending on your withholding. This is because of adjusted tax brackets and a larger standard deduction, among other tax changes.
Here’s a detailed look at these adjustments:
Standard Deduction Changes for 2024
While you can use itemization to take deductions on your tax returns, the standard deductions provided by the IRS are popular for their simplicity. Standard deductions are set amounts by which taxpayers can lower their taxable income based on their filing status.
For tax year 2024, the standard deduction for married couples filing jointly rises to $29,200, an increase of $1,500 from 2023.
For single taxpayers, the standard deduction rose to $14,600, a $750 increase from the previous year.
Heads of households, or unmarried taxpayers who have dependents and pay for more the half of the expenses of a household, can take a standard deduction of $21,900 in 2024, an increase of $1,100 from 2023.
Here's a table that breaks down standard deduction changes between 2023 and 2024:
Filing status
2023 Standard Deductions
2024 Standard Deductions
Single
$13,850.00
$14,600.00
Married, filing separately
$13,850.00
$14,600.00
Married, filing jointly
$27,700.00
$29,200.00
Head of household
$20,800.00
$21,900.00
For example, in 2024, an individual taxpayer with an income of $50,000 can take the standard deduction and reduce their taxable income to $35,400.
