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Tax Foundation

Tax Foundation

Tax brackets and rates for tax year 2024 are adjusted for inflation

Tax Foundation
Summary
Nutrition label

82% Informative

On a yearly basis, the Internal Revenue Service ( IRS ) adjusts more than 60 tax provisions for inflation.

Bracket creep occurs when inflation pushes taxpayers into higher income tax brackets or reduces the value of credits, deductions, and exemptions.

The new inflation adjustments are for tax year 2024 , for which taxpayers will file tax returns in early 2025 .

Alternative minimum tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax.

AMT exemption amount for 2024 is $ 85,700 for singles and $ 133,300 for married couples filing jointly.

Earned income tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar.

Long-term capital gains face different brackets and rates than ordinary income.

The Tax Cuts and Jobs Act of 2017 (TCJA) includes a 20 percent deduction for pass-through businesses.

Limits on the deduction begin phasing in for taxpayers with income above $191,950 in 2024 .

VR Score

91

Informative language

95

Neutral language

42

Article tone

formal

Language

English

Language complexity

41

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

long-living

Source diversity

1

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