The Internal Revenue Service (IRS) has announced its annual inflation adjustments for a variety of tax provisions. Highlights for tax year 2024 include:
- The basic exclusion amount for estates of decedents who die during 2024 rises to $13,610,000.
- The annual exclusion for gifts increases to $18,000.
- The standard deduction rises to $29,200 for married couples filing jointly, $14,600 for single taxpayers and married individuals filing separately, and $21,900 for heads of households.
- Marginal rates are:
- 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly)
- 35% for incomes over $243,725 ($487,450 for married couples filing jointly)
- 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
- 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
- 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
- 12% for incomes over $11,600 ($23,200 for married couples filing jointly)
- 10% for incomes of $11,600 or less ($23,200 for married couples filing jointly)
- The Alternative Minimum Tax exemption amount rises to $85,700 and begins to phase out at $609,350 ($133,300 for married couples filing jointly with phase out at $1,218,700).
- The maximum Earned Income Tax Credit amount rises to $7,830.
More information is available in the IRS news release.