Ten Major Tax Changes Coming in 2024

(TotalConservative.com) – Every year Americans struggle with paying their taxes. Whether it’s an economic downturn, or confusing new rules, the Internal Revenue Service (IRS) wants your money and they want it by April 15th. To help you get prepared, we’ve collected ten big changes coming in 2024 to your taxes.

The first major change is a shift in the tax brackets. IRS is signaling a 5.4% increase to income thresholds for each new bracket. Single filers earning less than $11,600 are taxed 10% of their income. The 12% bracket is for earners bringing in over $11,600 but less than $47,150. The jump to 22% happens for earners between $47,150 and $100,525.

The next bracket is for earners between $100,525 and $191,950, they’ll pay 24%. Over $191,950 but under $243,725 puts your burden at 32%. Earners between $243,725 and $609,350 pay 35% and folks over $609,350 pay 37%.

The values shift slightly for joint filers. The value of standard deductions is also going up, that’s a general claim folks can make that allows them to skip the process of listing every itemized deduction, saving time.

The Alternative Minimum Tax exemption is going up as well. This is an exemption for wealthy earners that requires them to drop certain deductions once they reach a specific income level.

The Earned Income Tax Credit (EITC) is going up from $7,430 to $7,830. This credit is for low-to-medium earners with children. This is intended to free up resources for parents. Credits for electric vehicles will become more complicated for EV buyers.

The monthly limitation for transportation costs is going up, as is the allowable FSA contributions for flexible healthcare spending. Americans working abroad can also earn an additional $6,500 in income which they can exclude from taxation considerations.

The exclusion for death taxes is going up to $13,610,000 of an estate from $12,920,000. This really only impacts individuals who are inheriting multiple millions of dollars.

The annual amount allowable to be gifted before triggering tax concerns is also going up $1,000 to $18,000 per individual per year. Adoption credits are also going up in 2024.

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