IRS Updates Tax Brackets, Deductions, and Contribution Caps for 2024

The IRS is adjusting the income limits for its tax brackets by 5.4% in 2024 to account for inflation, potentially providing a tax break for some taxpayers. The new tax brackets will result in more of taxpayers' income falling into lower tax brackets. The standard deduction is also increasing by 5.4% in 2024. The IRS is also raising limits for tax-advantaged accounts such as flexible spending accounts and health savings accounts. Taxpayers will file their 2024 taxes in early 2025.