2024 IRS Tax Changes May Make Your Paycheck Bigger Next Year
SOURCE: Zooey Liao/CNET
The IRS announced key tax code changes on Thursday, including increases to 2024 federal income tax brackets and the standard deduction. This move was in response to sticky inflation, which has kept prices high all year. These changes will apply to your 2024 taxes, which you'll file in 2025 -- and could affect the amount of taxes that are withheld from your paycheck.
The IRS typically makes tax code changes every year to account for inflation. This also helps prevent "tax bracket creep," which could push you into a higher tax bracket, despite inflation eating into your wages. So, even if you make more money in 2024, factoring inflation into the tax code could prevent you from being pushed into a higher tax bracket -- and may even bring you down to a lower bracket. If your income remains the same from 2023 to 2024, you might actually find yourself bringing home slightly more each payday. Here's why.
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