As the 2024 tax season approaches, the Internal Revenue Service (IRS) has announced significant changes to the standard deduction amounts for married couples filing jointly and single taxpayers. These adjustments aim to provide relief to taxpayers and reflect the rising cost of living.
For married couples filing jointly, the standard deduction for the 2024 tax year will increase to $29,200, marking a $1,500 rise from the previous year. This adjustment is intended to ease the tax burden on married couples and help them keep more of their hard-earned money.
Single taxpayers will also see an increase in their standard deduction for the 2024 tax year. The deduction will rise to $14,600, a $750 increase from the previous year. This change will allow single taxpayers to reduce their taxable income and potentially lower their overall tax liability.
The standard deduction is a fixed amount that taxpayers can subtract from their adjusted gross income, thereby reducing the amount of income subject to taxation. It is an important component of the tax system, as it simplifies the tax preparation process for many taxpayers and helps ensure that they are not taxed on their basic living expenses.
These changes to the standard deduction amounts for the 2024 tax year are part of the IRS’s ongoing efforts to keep pace with inflation and ensure that taxpayers are not unfairly burdened by rising costs. By adjusting the standard deduction amounts, the IRS aims to maintain the purchasing power of taxpayers and provide them with a fair and equitable tax system.
Disclaimer: The information provided above is not meant to be legal or tax advise. You should consult your CPA and attorney to determine the best course of action for your situation.
Mitzi E. Sullivan, CPA is a cloud based professional services provider
specializing in cloud accounting.