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<p>The Internal Revenue Service (IRS) has recently announced a series of inflation adjustments for the tax year 2024. These changes, which are detailed in Revenue Procedure 2023-34, are set to impact more than 60 tax provisions, including tax rate schedules and other tax changes.</p><p>This article aims to provide a comprehensive overview of these adjustments, ensuring that taxpayers are well-informed and prepared for the upcoming tax year.</p><h2 id="header-0">Key Changes for 2024</h2><p>Here are the 5 key changes that the IRS have introduced for the year 2024:</p><h3 id="1-standard-deduction-increases">1. Standard Deduction Increases</h3><ul><li>For married couples filing jointly, the standard deduction will rise to $29,200, up by $1,500 from 2023.</li><li>Single taxpayers and married individuals filing separately will see their standard deduction increase to $14,600, a $750 rise.</li><li>Heads of households will have a standard deduction of $21,900, up by $1,100.</li></ul><h3 id="2-marginal-tax-rates">2. Marginal Tax Rates</h3><ul><li>The top tax rate remains at 37% for single taxpayers with incomes over $609,350 and $731,200 for married couples filing jointly.</li><li>Other rates are adjusted accordingly, with the lowest rate being 10% for single individuals earning $11,600 or less, and $23,200 for married couples filing jointly.</li></ul><h3 id="3-alternative-minimum-tax-amt">3. Alternative Minimum Tax (AMT)</h3><p>The AMT exemption amount is $85,700, phasing out at $609,350 ($133,300 for married couples filing jointly, phasing out at $1,218,700).</p><h3 id="4-earned-income-tax-credit-eitc">4. Earned Income Tax Credit (EITC)</h3><p>The maximum EITC amount is $7,830 for taxpayers with three or more qualifying children, up from $7,430 in 2023.</p><h3 id="5-other-notable-adjustments">5. Other Notable Adjustments</h3><ul><li>The monthly limit for qualified transportation fringe benefits and parking rises to $315.</li><li>Employee salary reductions for contributions to health flexible spending arrangements increase to $3,200.</li><li>The foreign-earned income exclusion is $126,500, up from $120,000.</li><li>The basic exclusion amount for estates of decedents who die during 2024 is $13,610,000.</li><li>The annual exclusion for gifts is $18,000, up from $17,000.</li></ul><h3 id="what-are-the-unchanged-items">What are the Unchanged Items?</h3><p>The personal exemption remains at 0, continuing the trend set by the Tax Cuts and Jobs Act.</p><p>No limitation on itemized deductions, as per the same Act. The Lifetime Learning Credit phase-out thresholds remain unchanged.</p><h2 id="header-1">Conclusion</h2><p>The IRS&#39;s adjustments for the tax year 2024 reflect changes in the economy and are designed to help taxpayers navigate their financial responsibilities effectively.</p><p>Individuals and businesses must understand these changes to plan their finances and tax strategies accordingly. Consulting with a tax professional is recommended for personalized advice and guidance.</p><p>Want to calculate crypto taxes in compliance with IRS laws? <a href="https://app.kryptoskatt.com/signup" rel="noopener noreferrer nofollow">Sign Up on Kryptos Now</a> for free.</p><h2 id="header-2">FAQs</h2><p><strong>1. What are the new standard deduction amounts for 2024?</strong></p><p>For 2024, the standard deduction is $29,200 for married couples filing jointly, $14,600 for single taxpayers and married individuals filing separately, and $21,900 for heads of households.</p><p><strong>2. How have the tax brackets changed for the tax year 2024?</strong></p><p>The top tax rate remains at 37% for incomes over $609,350 for single taxpayers and $731,200 for married couples filing jointly. Other tax brackets have also been adjusted accordingly.</p><p><strong>3. What is the maximum Earned Income Tax Credit (EITC) for 2024?</strong></p><p>The maximum EITC for 2024 is $7,830 for taxpayers with three or more qualifying children, an increase from $7,430 in 2023.</p><p><strong>4. Are there any changes to the Alternative Minimum Tax (AMT) exemption for 2024?</strong></p><p>Yes, the AMT exemption amount for 2024 is $85,700 and begins to phase out at $609,350 ($133,300 for married couples filing jointly, phasing out at $1,218,700).</p>

IRS Announces Tax Bracket Adjustments for 2024: What You Need to Know

IRS Announces Tax Bracket Adjustments for 2024: What You Need to Know

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