The IRS has issued Rev. Proc. 2023-34 that contains various 2024 inflation adjusted amounts, including the individual tax rates, capital gains rates, standard deductions, §179 expensing limits, and inflation-adjusted figures for health, charitable, compliance, and other specialty items. Some of the more notable adjustments are below.
Standard Deduction
$29,200 – Joint return or surviving spouse
$21,900 – Head of household
$14,600 – Single
$14,600 – Married filing separate returns
$1,300 – Dependents (or $450 plus the individual’s earned income, whichever is greater.
$1,550 – Married taxpayers 65 or over or blind
$1,950 – Single taxpayer or head of household who is 65 or over or blind
Exemption Amount
$5,000 – While the dependency exemption deduction under §151 is reduced to zero from 2018 through 2025, this reduction isn’t taken into account for other purposes of the Code, such as who is a qualifying relative for family credit purposes, and eligibility for head-of-household status.
Kiddie Tax Exemption
$2,600 – A parent will be able to elect to include a child’s income on the parent’s return for 2024 if the child’s income is more than $1,300 and less than $13,000
Business Expensing
$1,220,000 – The amount that may be expensed under §179
These and all the other inflation adjusted figures are found in Rev. Proc. 2023-34.