IRS announces a 5.4% increase for 2024 in the standard deduction and bracket limits

Safiel · 2023-11-11T05:42:58.279Z

10%: Taxable income up to $11,600
12%: Taxable income over $11,600
22%: Taxable income over $47,150
24%: Taxable income over $100,525
32%: Taxable income over $191,950
35%: Taxable income over $243,725
37%: Taxable income over $609,350

Standard deduction for single filers will be $14,600.

So a single person can make up to $61,750 gross, before they start seeing any portion of their income taxed above 12%.

WorldWatcher · 2023-11-11T17:45:37.383Z

Damn you Safiel, now you are going to make me pull out a paper towel (because who uses napkins anymore) and a pencil to do math. (I suck at math.)

So, if:

MI = My Employer Income
WI = Wife’s Employer Income
MP = Military Pension (I’m an ex-enlisted, so don’t get $$$ in your eyes)
X = Expected percent raise based on historical trends from our employers
C = COLA for MP
SD = Standard Deduction x 2 (Married Filing Jointly)

We get …

( (MI * 1.0X) + (WI * 1.0X) + (MP * 1.0C) ) - 2SD = Taxable income.

Plugging the numbers…

… … Do the multiplication…

… … … … Wipe the sweat from my brow

… … … … … … Carry the 1…

… … … … … … … … Substract the deduction…

… … … … … … … … … … Crap.

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Oh wait. Don’t forget to subtract 401K contributions you doofus.

OK, that is better.
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I think with a high degree of confidence I can now announce I’m no where near the tax bracket that @Safiel is in.

Wait what? Is that supposed to make me feel good?

WW

Safiel · 2023-11-11T20:28:43.504Z

WorldWatcher:

I think with a high degree of confidence I can now announce I’m no where near the tax bracket that @Safiel is in.

Wait what? Is that supposed to make me feel good?

WW

If it makes you feel better, YOU don’t have to write four checks in the five figure range to the IRS each year.

Impenitent · 2023-11-11T20:30:45.133Z

and watch for your 1099K (what? I’m not a business?)

Samm · 2023-11-12T00:03:11.648Z

WorldWatcher:

I think with a high degree of confidence I can now announce I’m no where near the tax bracket that @Safiel is in.

You probably are, but the brackets he posted are for single taxpayers. You want the “married filing jointly” figures.

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)

And the standard deduction for married couples filing jointly for tax year 2024 rises to $29,200.

wonderingrover · 2023-11-12T03:51:21.279Z

Impenitent:

and watch for your 1099K (what? I’m not a business?)

1099’s are nothing new - I’ve been seeing them my entire career. There’s a whole array of income streams they cover - from work as an independent contractor / self employed person to retirement income. Even a lot of state tax refunds are reported on a 1099.

Samm · 2023-11-12T08:26:31.173Z

Almost all of my income is reported on 1099s. 1099-R (retirement plan), 1099-div, and 1099-int. Technically, even my Social Security tax report is a 1099.

WorldWatcher · 2023-11-12T11:42:06.421Z

Samm:

Almost all of my income is reported on 1099s. 1099-R (retirement plan), 1099-div, and 1099-int. Technically, even my Social Security tax report is a 1099.

Looking forward to my last W-2 in a year or two.

WW