New 2024 Tax Rates and Thresholds

January 8th, 2024

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

Sources:

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