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2024 Tax Brackets and Standard Deductions: What You Need to Know
As we approach the 2024 tax year, it’s essential to stay informed about the latest changes in tax brackets and standard deductions. These adjustments, made in response to inflation, can significantly impact your financial planning. In this comprehensive guide, we’ll break down the new tax brackets for single filers and married couples filing jointly, as well as the updated standard deductions. Plus, we’ll show you how O1ne Mortgage can help you navigate these changes and manage your mortgage needs effectively.
Tax Brackets for 2024: Single Filers
Tax brackets apply the lowest tax rates to lower levels of income and progressively higher rates as your income increases. For 2024, the first $11,600 you earn as a single taxpayer is taxed at 10%, the next $35,549 is taxed at 12%, and so on.
| Rate | Tax Bracket | Taxes Owed |
|---|---|---|
| 10% | $0 to $11,600 | 10% of taxable income |
| 12% | $11,601 to $47,150 | $1,160 + 12% of amount over $11,600 |
| 22% | $47,151 to $100,525 | $5,426 + 22% of amount over $47,150 |
| 24% | $100,526 to $191,950 | $17,168 + 24% of amount over $100,525 |
| 32% | $191,951 to $243,725 | $39,110 + 32% of amount over $191,950 |
| 35% | $243,726 to $609,350 | $55,678 + 35% of amount over $243,725 |
| 37% | Over $609,350 | $183,646 + 37% of amount over $609,350 |
To estimate the amount of tax you’ll owe, find the bracket that contains your projected taxable income (adjusted gross income minus your standard deduction for 2024) and do the calculation shown in the right-hand column.
Example: If your 2024 taxable income is $44,000, the first $11,600 of your income is taxed at 10% ($1,160) with the remaining $32,400 taxed at 12%. Therefore, you will owe $1,160 + 12% of $32,400, or $5,048. Your income places you in the 12% tax bracket.
Tax Brackets for 2024: Married Filing Jointly
Married couples filing jointly will see proportional adjustments to their tax brackets, with the top bracket starting at $731,200 versus $693,751 in 2023.
| Rate | Tax Bracket | Taxes Owed |
|---|---|---|
| 10% | Up to $23,200 | 10% of taxable income |
| 12% | $23,201 to $94,300 | $2,320 + 12% of amount over $23,200 |
| 22% | $94,301 to $201,050 | $10,852 + 22% of amount over $94,300 |
| 24% | $201,051 to $383,900 | $34,337 + 24% of amount over $201,050 |
| 32% | $383,901 to $487,450 | $78,220 + 32% of amount over $383,900 |
| 35% | $487,451 to $731,200 | $111,356 + 35% of amount over $487,450 |
| 37% | Over $731,200 | $196,668 + 37% of amount over $731,200 |
What Are the Standard Deductions for 2024?
In addition to tax bracket adjustments, standard deductions are changing in 2024. If you take the standard deduction instead of itemizing, here are the standard deductions for 2024 and their 2023 counterparts.
| Filing Status | 2023 | 2024 |
|---|---|---|
| Single and Married Filing Separately | $13,850 | $14,600 |
| Head of Household | $20,800 | $21,900 |
| Married Filing Jointly | $27,700 | $29,200 |
The Bottom Line
Adjustments for inflation help ensure that IRS marginal tax rates and standard deductions reflect the financial realities of everyday Americans more accurately. Because inflation has packed a bigger punch recently than in years past, your personal finances may benefit from an adjustment as well. Consider revisiting your monthly budget and checking up on your credit report and score to make sure you’re on track to meet your financial goals, maintain your financial health, and make good use of any tax savings you’ll see as a result of these IRS changes.
At O1ne Mortgage, we understand that managing your finances can be challenging, especially with changing tax laws. That’s why we’re here to help you navigate these changes and ensure you get the best mortgage services available. Whether you’re looking to buy a new home, refinance your current mortgage, or need advice on managing your mortgage payments, our team of experts is ready to assist you.
Don’t hesitate to reach out to us at 213-732-3074 for any mortgage service needs. At O1ne Mortgage, we’re committed to helping you achieve your financial goals and secure your dream home.
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