IRS announces new tax brackets for 2024

The Street

TheStreet’s J.D. Durkin brings you the biggest news of the day, including how the market fared and what you need to know about the new 2024 tax brackets.

Transcript

00:00 I'm JD Durkin reporting from the floor of the New York Stock Exchange.

00:03 Stocks were in the red to close out the day's session, snapping their eight-day winning

00:07 streak, the Dow closing down over 200 points, the Nasdaq down just under 1%, while the S&P

00:13 500 closed 0.8% lower.

00:16 This comes as markets continue to react to comments from Federal Reserve Chairman Jerome

00:20 Powell.

00:21 He reiterated that more work would need to be done to bring inflation down to the 2%

00:26 threshold, meaning higher for longer interest rates.

00:30 Currently, inflation sits at 3.7%, but it wasn't all doom and gloom on the day.

00:35 Powell did say the U.S. Central Bank has been encouraged by the recent slowdown in economic

00:40 activity.

00:41 Meanwhile, the IRS has introduced new thresholds for each of the seven tax brackets, as well

00:46 as standard deductions.

00:48 Beginning in 2024, each bracket will increase by about 5.4% for both those filing separately

00:55 or as married couples.

00:56 The increase comes a year after the IRS expanded its tax brackets by a historically large inflation

01:02 adjustment of 7%.

01:05 Set in 2017 by the Tax Cuts and Jobs Act, the seven federal income tax rates are 10,

01:11 12, 22, 24, 32, 35, and 37%.

01:17 For 2024, the 37% top rate will apply to single filers with taxable income above $609,300.

01:24 And to joint filers who earn $731,200.

01:31 Also the standard deduction will see an increase.

01:33 As a reminder, that's the specific dollar amount that reduces the amount of taxable

01:38 income.

01:39 The standard deduction for joint filers next year will rise to $29,200.

01:44 And single filers may claim $14,600.

01:46 That'll do it for your daily briefing.

01:50 From the floor of the New York Stock Exchange, I'm JD Durkin with the Street.

01:53 [BLANK_AUDIO]

Recommended

Category

Transcript

Recommended