Americans can contribute up to $23,000 into 401(k), 403(b), and most 457 plans.
Retirement and disability benefits will increase by 3.2% and more than $50 a month on average starting in January 2024.
The IRS has announced its annual inflation adjustments for the 2024 tax year.
The IRS is adjusting the tax brackets upwards by 5.4%, relying on a formula based on the consumer price index.
The limit for 2024 contributions to health flexible spending arrangements has been raised to $3,200.
The standard deduction for married couples filing jointly for the 2024 tax year will be $29,200.
The Internal Revenue Service (IRS) has announced its annual inflation adjustments for the 2024 tax year. These adjustments are expected to increase paychecks and lower income tax for many Americans. The new tax adjustments will apply to tax returns filed in 2025. The IRS has also updated the 2024 tax withholding tables. The standard deduction for married couples filing jointly for the 2024 tax year will be $29,200, marking a $1,500 increase from the previous year.
In addition to the standard deduction, the IRS has announced several other changes. Retirement and disability benefits will increase by 3.2% and more than $50 a month on average starting in January 2024. The limit for 2024 contributions to health flexible spending arrangements has been raised to $3,200, up from $3,050 for 2023. Americans can contribute up to $23,000 into 401(k), 403(b), and most 457 plans, which is $500 more than the $22,500 contribution limit for 2023.
Other notable changes include an increase in the Earned Income Tax Credit for taxpayers with three or more children, and an increase in the alternative minimum tax exemption. The IRS is adjusting the tax brackets upwards by 5.4%, relying on a formula based on the consumer price index. This adjustment comes after the IRS last year expanded its tax brackets by a historically large 7%, reflecting last year's high inflation.
Other notable changes include an increase in the Earned Income Tax Credit for taxpayers with three or more children, and an increase in the alternative minimum tax exemption.
Retirement and disability benefits will increase by 3.2% and more than $50 a month on average starting in January.
The IRS also announced that it was raising the limit for 2024 contributions to health flexible spending arrangements to $3,200, up from $3,050 for 2023.
Americans can contribute up to $23,000 into 401(k), 403(b) and most 457 plans, $500 more than the $22,500 contribution limit for 2023.