IRS Announces New 2024 Income Tax Brackets

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Alyssa Guzik
November 29, 2023

Every year, millions of Black Americans wait for their employers to send their W-2 forms so that they can file their taxes. Last year, Black filers faced hurdles regarding their returns. This upcoming year, things look differently.

For the upcoming 2024 filing year, the Internal Revenue Service (IRS) has adjusted all bracket ranges to factor in the impact of inflation. The adjustment increases tax bracket amounts as well as standard deductions.

These changes aim to help prevent inflation from taxing people higher than they should be. Inflation determines how expensive living is over a given period. It drives up the cost of everything from mortgage rates to gas and groceries. The IRS is trying to combat that with the announced changes.

These changes include a 3.2% increase in social security benefits, a $1,500 increase for the standard deduction for married couples filing jointly, $750 for single filers, and modest increases for FSA, 401k, and other contributions.

The hope for the IRS going forward is that these adjustments will increase American tax filers' take-home income while lowering the overall tax burden. While Black Americans typically have the lowest median income, these adjustments may potentially help increase the financial stability of Black families.