IRS TAX CHANGES FOR 2024

The IRS has announced a number of changes to various tax matters for 2024. These tax matters have been adjusted for inflation, and since there has been a significant amount of inflation this past year, these items have increased, significantly in some cases.

The lowest income tax rate for 2024 is still 10% and will apply to taxpayers with incomes up to $11,600 (2023 was $11,000) for an individual and $23,200 (2023 was $22,000) for a couple filing jointly. 

The next bracket is the 12% bracket and will apply to taxpayers with incomes up to $47,150 (2023 was $44,275) for an individual and $94,300 (2023 was $89,450) for a couple filing jointly. 

The next bracket is 22% and will apply to taxpayers with incomes up to $100,525 (2023 was $95,375) for an individual and $201,050 (2023 was $190,750) for a couple filing jointly. 

The next bracket is 24% and will apply to taxpayers with incomes up to $191,950 (2023 was $182,100) for an individual and $383,900 (2023 was $364,200) for a couple filing jointly. 

The next bracket is 32% and will apply to taxpayers with incomes up to $243,725 (2023 was $231,250) for an individual and $487,450 (2023 was $462,500) for a couple filing jointly. 

The next bracket is 35% and will apply to taxpayers with incomes up to $609,350 (2023 was $578,125) for an individual and $731,200 (2023 was $693,750) for a couple filing jointly. 

The 2024 top income tax rate is still 37%.  The income tax rate will apply to single taxpayers with incomes over $609,350 (2023 was $578,125) and joint filers with income over $731,200 for individuals filing jointly and that number is up from 2023 ($693,750).

Here are some other tax changes for 2024:

• The FICA tax will be applicable to earnings up to $168,600. The amount previously was $160,200.
• The federal estate tax exemption will increase to $13,610,000 in 2024. In 2023, that exemption was $12,920,000.
• The gift tax annual exclusion will increase from $17,000 to $18,000 in 2024.
• The standard deduction will increase to $29,200 for a couples filing jointly which is an increase of $1,500 from 2023. For taxpayers filing individually, the increase will be $750 to $14,600.
• For 2024, the 401k contribution limit is $23,000 (up from $22,500 in 2023) with a catchup of $7,500 for individuals 50 and over (same as 2023).
• For 2024, the HSA contribution limit is $4,150 for individuals (up from $3,850 in 2023) and $8,300 for a family with coverage (up from $7,750 in 2023) and a $1,000 catchup for those 55 and older (same as 2023).

Please make sure that you speak with your estate planning attorney and tax preparer regarding these various matters for 2024.

NOTE: This general summary of the law should not be used to solve individual problems since slight changes in the fact situation may require a material variance in the applicable legal advice.

James F. Contini II, Esq.
Certified Specialist in Estate Planning,
Trust & Probate Law by the OSBA
Krugliak, Wilkins, Griffiths & Dougherty Co., LPA
405 Chauncey Avenue NW
New Philadelphia, Ohio 44663
Phone: (330) 364-3472
Fax: (330) 602-3187
Email:  jcontini@kwgd.com