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In November 2023, the IRS made updates to over 60 tax codes that affect you as an individual tax filer. These changes could impact your 2024 tax season and beyond, including updates to tax brackets, the earned income credit, standard deductions and more. Here's what you need to know about the nitty gritty numbers as you get prepared.

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Tax Rate Tables

The tax rate you pay is a direct correlation of your earnings over the previous year. Simply put, wherever you fall on the spectrum for your adjusted gross income (AGI), that will be the tax rate applied for your earnings. 

For the 2024 tax brackets, the tax rates are still in a range from 10% to 37%, but both the federal income tax brackets and the standard deduction will see an uptick. This adjustment was made in an effort to combat the impact of inflation, and could provide a bit of a break for some taxpayers. These heightened figures will be applicable to your taxes for 2024, which you'll be submitting in 2025.

See the chart below for the updated ranges

2024 Income Tax Brackets (Returns Filed April 2025)

Percentage Single Filer Married Filing Jointly 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%

$609,351+

$731,201+

$365,601+

$609,350+

If you're looking for tax brackets for 2023 (filed in 2024), here are those numbers:

2023 Income Tax Brackets (Returns Filed April 2024)

Percentage Single Filer Married Filing Jointly Married Filing Separate Head of Household

10%

$0-$11,000

$0-$22,000

$0-$11,000

$0-$15,700

12%

$11,001-$44,725

$22,001-$89,450

$11,001-$44,725

$15,701-$59,850

22%

$44,726-$95,375

$89,451-$190,750

$44,726-$95,375

$59,851-$95,350

24%

$95,376-$182,100

$190,751-$364,200

$95,376-$182,100

$95,351-$182,100

32%

$182,101-$231,250

$364,201-$462,500

$182,101-$231,250

$182,101-$231,250

35%

$231,251-$578,125

$462,501-$693,750

$231,251-$346,875

$231,251-$578,100

37%

$578,126+

$693,751+

$346,876+

$578,101+

Capital Gains Tax

There’s a long-held understanding among investors that capital gains taxes are the norm for selling an asset for a profit. The government taxes those earnings separately from your salaried or earned income. There is a bonus, however, if you hold an asset for at least a year prior to selling you will be taxed less—it’s a “long-term capital gain tax." If you sell prior to a year it’s a “short-term capital gain tax,” which is a much more aggressive applied rate.

In 2024, the IRS is adjusting the brackets for long-term capital gains tax to allow investors to earn more before being taxed. Short-term capital gains tax rates remain the same, but the income thresholds have also been adjusted.

Below are the new brackets along with a comparison to 2023

Previous 2023 Long-Term Capital Gains Tax Rates

Filing Status 0% Rate 15% Rate 20% Rate

Single

Up to $44,625

$44,626 – $492,300 

Over $492,300

Married filing jointly

Up to $89,250

$89,251-$553,850

Over $553,850

Married filing separately

Up to $44,625

$44,626 – $276,900

Over $276,900

Head of household

Up to $59,750

$59,751-$523,050

Over $523,050

New 2024 Long-Term Capital Gains Tax Rates

Filing Status 0% Rate 15% Rate 20% Rate

Single

Up to $47,025

$47,026-$518,900

Over $518,900

Married filing jointly

Up to $94,050

$94,051-$583,750

Over $583,750

Married filing separately

Up to $47,025

$47,026-$291,850

Over $291,850

Head of household

Up to $63,000

$63,001-$551,350

Over $551,350

Standard Deduction Increase

Also included as a direct result of inflation is an increase in standard deduction. The standard deduction is a portion of your AGI that isn’t subject to income tax. It’s common for the deduction to be increased incrementally year over year. For individuals, the deduction is now $14,600 and married couples filing jointly its $29,200. 

With this increase taxpayers could see a decrease in their tax bill if they owe or they could now be subject to a refund. 

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Child Tax Credit

family walking on sidewalk

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Tax payers who have children and are eligible for the Child Tax Credit, which can be up to $2,000 per qualifying dependent under 17. The only significant difference is that the refundable portion, sometimes called the additional child tax credit, is worth up to $1,700 for taxes filed in 2025. For the 2023 tax year (taxes filed in 2024), it was $1,600.

Earned Income Credit

Low to moderate income households also have an additional tax break at their disposal as a way to lower their taxable income:the Earned Income Credit.

Here’s the new ranges and credits for 2024:

2024 Earned Income Credit (EIC) Qualification Table

Qualification No Children 1 Child 2 Children 3+ Children

Maximum EIC Amount

$632

$4,213

$6,960

$7,830

Earned Income Required

$8,260

$12,390

$17,400

$17,400

Phaseout Threshold (Married Filing Jointly)

$17,250

$29,640

$29,640

$29,640

Completed Phaseout Amount  (Married Filing Jointly)

$25,511

$56,004

$62,688

$66,819

Phaseout Threshold (other filing statuses)

$10,300

$22,720

$22,720

$22,720

Completed Phaseout (Other filing statuses)

$18,591

$49,084

$55,768

$59,899

Taxes 2024 and Beyond

If inflation continues to spiral out of control, we may be seeing larger-than-normal credit increases in the coming years. However, regardless of the market most of these tax codes are subject to indexing anyways (indexing is the annual review that determines their increases). Because of indexing, the likelihood of these codes changing again is high, but how much is yet to be determined

AB

Ashlyn Brooks

Ashlyn Brooks is a financial writer and former civil engineer. She's on a mission to show others how to save and spend smarter through purposeful money habits. Her work has been featured on Investor.com, HerMoney.com, MoneyGeek and QuickBooks