IRS Announces New Tax Brackets and Deductions for 2024 and 2025

Key updates include higher standard deductions and adjusted income brackets aimed at easing the tax burden for many Americans.

The standard deduction for 2024 has increased to $29,200 for married couples filing jointly and $14,600 for single filers, reflecting inflation adjustments.
Income tax brackets for 2024 have been revised, with the highest 37% rate applying to incomes over $609,350 for single filers and $731,200 for joint filers.
For 2025, the standard deduction will rise further to $30,000 for married couples filing jointly and $15,000 for single filers, with corresponding adjustments to tax brackets.
The Earned Income Tax Credit for taxpayers with three or more children will increase to $8,046 in 2025, up from $7,830 in 2024.
Additional adjustments include higher limits for health savings account contributions and Social Security benefits, with the maximum monthly benefit rising to $4,018 in 2025.