The IRS announcement today included information about the new adjustments regarding tax brackets.
IRS Announcement Today: Some New Adjustments
The IRS announcement today is in regard to the new income limits for the seven tax brackets, providing some taxpayers with breaks for 2024. The IRS announcement today explains that tax brackets are being adjusted upward by 5.4% using a formula based on the consumer price index.
The IRS announcement today also talks about how it is a lower adjustment than last year when the brackets were expanded by 7% due to high inflation. For each type of filer, including those filing separately or as married couples, according to the IRS announcement today, tax brackets will be increased by 5.4% for 2024.
The standard deduction will also increase for various filing statuses, the IRS announcement today adds. As also mentioned by the IRS announcement today, the top tax rate will remain at 37% for individual single taxpayers with high incomes, and the lowest rate will be 10% for those with lower incomes.
According to a published article by the Washington Examiner, the IRS announcement today has also talked about the increase in other tax policies. The IRS announcement today also mentioned examples such as the maximum Earned Income Tax Credit amount for qualifying taxpayers and the maximum credit allowed for adoption.
2025 Filed Tax Returns
In a published article by CNBC, other changes include adjustments to the alternative minimum tax, estate tax exemption, earned income tax credit, etc. These changes will affect tax returns filed in 2025.
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