Others will itemize their deductions because taken together, they add up to more than the standard deduction.įor example, if you are a single filer and your mortgage interest, charitable contributions and allowable portion of your state and local incomes taxes come to more than $14,600 in 2024, you likely would itemize your deductions to save more on your taxes. Most filers claim the standard deduction. It’s just keeping them from facing higher taxes if their inflation-adjusted incomes (also known as real incomes) rise by 7%,” wrote Robert McClelland, a senior fellow at the Tax Policy Center, in a blog post.įor individuals and married people filing separately, the new federal standard deduction next year will increase to $14,600, up from $13,850 this year.įor married couples filing jointly, the standard deduction will rise to $29,200, up from $27,700 currently.Īnd for people who file as head of household, the standard deduction will be $21,900, up from $20,800 today. Put another way, “the inflation adjustment isn’t putting extra money in people’s pockets. ![]() But the net effect of the changes will not meaningfully alter a person’s tax burden. The changes are designed to protect taxpayers from the effects of inflation, said Alex Durante, an economist at The Tax Foundation. The IRS makes inflation adjustments annually to tax brackets, the standard deduction and some other tax breaks. Translation: These are the numbers that will be relevant to the tax return most Americans will file in early 2025. ![]() If you are someone who likes to plan ahead on your taxes, the IRS this week released the new inflation-adjusted income tax brackets and standard deduction amounts that will be in effect for tax year 2024.
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