For tax year 2024, IRS announced adjustments for over 60 tax provisions, including tax rate schedules . . . . . . . . . . . . . . .
The standard deduction for married couples filing jointly is now $29,200, supporting lower taxes and potentially larger paychecks . . . . . . . . . . . . . . . .
Tax brackets adjusted for inflation; higher income thresholds before moving to a higher tax bracket, benefiting taxpayers . . . . . . . . . . . . . . .
Single filers see an increased standard deduction to $14,600, impacting paycheck size positively. . . . . . . . . . . . . . . .
For heads of households, the standard deduction is increased to $21,900, leading to potential paycheck growth . . . . . . . . . . . . . . .
Bonus and other supplemental wage tax rates remain at 22% (optional flat rate) or 37% (mandatory flat rate) . . . . . . . . . . . . . . .
Adjusted annual amounts for nonresident alien employees, benefiting those who haven’t submitted a Form W-4 since 2020. . . . . . . . . . . . . . . .
Increased 401(k) contribution limits, allowing for greater pre-tax savings and reducing taxable income. . . . . . . . . . . . . . . .
Enhanced child tax credits under the new rules, providing additional relief to families . . . . . . . . . . . . . . .
Increased Earned Income Tax Credit (EITC) amounts, especially for taxpayers with three or more qualifying children . . . . . . . . . . . . . . .