How the 2024 IRS Inflation Adjustments May Impact You
The Internal Revenue Service (IRS) announced the tax year 2024 annual inflation adjustments for many tax provisions. Click here to view the full list. Here's a summary of three provisions that may impact homeowners and homebuyers:
1
STANDARD DEDUCTION
- $29,200: for married couples filing jointly for the tax year 2024. This is up from $27,700 in 2023.
- $14,600: for single taxpayers and married individuals filing separately. This is from $13,850 in 2023.
- $21,900: for heads of households. This is up from $20,800 in 2023.
2
GIFT TAX EXCLUSION
- $18,000: annual gift tax exclusion for 2024. This is up from $17,000 in 2023.
- $13,610,000: lifetime exclusion for 2024. This is up from $12,920,000 in 2023.
3
MARGINAL TAX BRACKETS
- 37%: for incomes greater than $609,350 ($731,200 for married couples filing jointly)
- 35%: for incomes over $243,725 ($487,450 for married couples filing jointly)
- 32%: for incomes over $191,150 ($383,900 for married couples filing jointly)
- 24%: for incomes over $100,525 ($201,050 for married couples filing jointly)
- 22%: for incomes over $47,150 ($94,300 for married couples filing jointly)
- 12%: for incomes over $11,600 ($23,200 for married couples filing jointly)
- 10%: for incomes of $11,600 or less ($23,200 for married couples filing jointly)
PLEASE NOTE: THIS OVERVIEW IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS REVENUE PROCEDURE 2023-34.
$29,200 for married taxpayers filing a joint return.
$14,600 for single taxpayers.