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New 2024 Tax Rates and Thresholds

As the 2023 tax filing season begins, practitioners should keep in mind 2024 tax numbers and rates that will impact their clients for the current year.  The IRS issued these numbers late last year through news releases and publications, of which the highlights are summarized below.

Individual Filers

The 2024 tax brackets for individual filers is as follows.

Tax Rate

Single

Married Filing Joint

Married Filing Separate

Head of Household

10%

$0 – $11,600

$0 – $23,200

$0 – $11,600

$0 – $16,550

12%

$11,601 – $47,150

$23,201 – $94,300

$11,601 – $47,150

$16,551 – $63,100

22%

$47,151 – $100,525

$94,301 – $201,050

$47,151 – $100,525

$63,101 – $100,500

24%

$100,526 – $191,950

$201,051 – $383,900

$100,526 – $191,950

$100,501 – $191,950

32%

$191,951 – $243,725

$383,901 – $487,450

$191,951 – $243,725

$191,951 – $243,700

35%

$243,726 – $609,350

$487,451 – $731,200

$243,726 – $365,600

$243,701 – $609,350

37%

Over $609,350

Over $731,200

Over $365,600

Over $609,350

Standard Deduction

The 2024 standard deduction has also been raised from the 2023 deduction across filing statuses.

Filing Status

2024 Standard Deduction

2023 Standard Deduction

Single

$14,600

$13,850

Married Filing Joint

$29,200

$27,700

Married Filing Separate

$14,600

$13,850

Head of Household

$21,900

$20,800

Earned Income Credit

The earned income credit has been adjusted for inflation as well, with the following table reflecting the updated changes per IRB 2023-48.

Item

1 child

2 children

3 or more children

No children

Earned Income Amount

$12,390

$17,400

$17,400

$8,260

Maximum Amount of Credit

$4,213

$6,960

$7,830

$632

Threshold Phaseout Amount (Married Filing Jointly)

$29,640

$29,640

$29,640

$17,250

Completed Phaseout Amount (Married Filing Jointly)

$56,004

$62,688

$66,819

$25,511

Threshold Phaseout Amount (All other filing statuses)

$22,720

$22,720

$22,720

$10,330

Completed Phaseout Amount (All other filing statuses)

$49,084

$55,768

$59,899

$18,591

Mileage Rates

Deductible mileage rates for the 2024 tax year have also changed, and are summarized in the following table.

Deduction

Mileage Rate

Business miles

$0.67 per mile

Medical miles

$0.21 per mile

Charitable miles

$0.14 per mile

In the realm of the estate and gift tax, the basic exclusion for decedents in 2024 is $13,610,000.  The annual gift tax exclusion for individuals in 2024 is $18,000.

While the 2023 tax filing season is underway, practitioners should be mindful of these updated and changed rates and thresholds to help navigate their clients in tax planning for the current year.

By Chris Korban, CPA
Tax Materials Specialist, U of I Tax School
Chris Korban

Sources:

Disclaimer: The information referenced in Tax School’s blog is accurate at the date of publication. You may contact taxschool@illinois.edu if you have more up-to-date, supported information and we will create an addendum.

University of Illinois Tax School is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this site is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. This blog and the information contained herein does not constitute tax client advice.

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