Welcome to our recap on the Federal Tax Brackets for the year 2024. As the new tax year comes to and end, understanding the Federal Tax Brackets is crucial for individuals and businesses alike. The tax code is a complex landscape, and staying informed about the latest changes ensures that you can navigate it effectively, making informed financial decisions. In this post, we will summarize the Federal Tax Brackets for 2024, shedding light on the income thresholds, rates, and implications for taxpayers. Whether you’re a seasoned taxpayer or filing for the first time, this guide aims to quickly empower you with the knowledge you need.
For the prior year’s information, see: Federal Tax Brackets 2023
Federal Tax Brackets 2024 – Income Tax
| Tax Rate | Single | Married – Filed Jointly | Married – Filed Separately | Head of household |
|---|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $11,600 | $0 to $16,550 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 | $11,601 to $47,150 | $16,551 to $63,100 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 | $47,151 to $100,525 | $63,101 to $100,500 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 | $100,501 to $191,950 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 | $191,951 to $243,725 | $191,951 to $243,700 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 | $243,701 to $609,350 |
| 37% | $609,351 or more | $731,201 or more | $365,601 or more | $609,351 or more |
401k Contribution Limit
| Employee Contributions | Employee and Employer Contributions | Catch-up Contributions (50 or older) |
|---|---|---|
| $23,000 | $69,000 | $7,500 |
Traditional IRA Deduction
- Under 50 years old: $7,000
- Over 50 years old: $8,000
| Filing Status | Modified Adjusted Gross Income (MAGI) | Deduction Limit |
|---|---|---|
| Single individuals | < $77,000 | Full deduction up to the amount of your contribution limit |
| > $77,000 but < $87,000 | Partial deduction | |
| > $87,000 | No deduction | |
| Married (Joint Filing) | < $123,000 | Full deduction up to the amount of your contribution limit |
| > $123,000 but < $143,000 | Partial deduction | |
| > $143,000 | No deduction | |
| Married (Separate Filing) | < $10,000 | Partial deduction |
| > $10,000 | No deduction |
Roth IRA Contribution Limit
- Under 50 years old: $7,000
- Over 50 years old: $8,000
| Filing Status | Modified Adjusted Gross Income (MAGI) | Deduction Limit |
|---|---|---|
| Single individuals | < $146,000 | Full contribution up to the amount of your contribution limit |
| > $146,000 but < $161,000 | Partial contribution | |
| > $161,000 | No contribution | |
| Married (Joint Filing) | < $230,000 | Full contribution up to the amount of your contribution limit |
| > $230,000 but < $240,000 | Partial contribution | |
| > $240,000 | No contribution | |
| Married (Separate Filing) | < $10,000 | Partial contribution |
| > $10,000 | No contribution |
Additional Limits
- Standard Deduction: $14,600 (Single), $14,600 (Married – Separate), $29,200 (Married – Jointly), $21,900 (Head of Household)
- Health Savings Account (HSA): $4,150 (Individuals), $8,300 (Family)
- Capital Loss Deduction: $3,000 (Single, Married – Jointly), $1,500 (Married – Separately)
- Social Security: $168,600
- Gift Exclusion: $18,000
Staying abreast of the Federal Tax Brackets for 2024 is a pivotal aspect of financial planning and responsible citizenship. The tax landscape is dynamic, and changes can have a direct impact on your bottom line. By understanding the income thresholds, tax rates, and deductions relevant to your situation, you can optimize your tax liability and make strategic financial decisions. As we’ve explored in this blog post, the Federal Tax Brackets for 2024 reflect the government’s approach to revenue generation and public finance. We hope this guide has provided you with valuable information to navigate the tax season with confidence.
Please consult with your tax professional to ensure personalized guidance tailored to your unique financial situation.