2024 Tax Adjustments Highlights

Standard Deduction Increases:

Married couples filing jointly: $29,200 (+$1,500 from 2023).

Single taxpayers and married individuals filing separately: $14,600 (+$750 from 2023).

Heads of households: $21,900 (+$1,100 from 2023).

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Marginal Tax Rates:

Top rate remains 37% for individual single taxpayers with incomes over $609,350 ($731,200 for married couples filing jointly).

Other rates range from 35% to 10% based on income thresholds.

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Alternative Minimum Tax (AMT) Exemption:

$85,700 for 2024, with a phase-out starting at $609,350 ($133,300 for married couples filing jointly).

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Earned Income Tax Credit (EITC):

Maximum amount: $7,830 for qualifying taxpayers with three or more qualifying children.

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Qualified Transportation Fringe Benefit:

Monthly limitation increases to $315 for 2024.

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Health Flexible Spending Arrangements (FSA):

Employee salary reduction limit increases to $3,200 for 2024.

Maximum carryover amount for plans allowing unused amounts: $640.

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Medical Savings Account:

Self-only coverage deductible: $2,800 to $4,150.

Self-only coverage out-of-pocket expense limit: $5,550.

Family coverage deductible: $5,550 to $8,350.

Family coverage out-of-pocket expense limit: $10,200.

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Foreign Earned Income Exclusion:

$126,500 for 2024, up from $120,000 in 2023.

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Estate Tax:

Basic exclusion amount for decedents dying in 2024: $13,610,000.

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Gift Tax:

Annual exclusion for gifts increases to $18,000 for 2024.

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Adoption Credit:

Maximum credit: $16,810 for 2024, up from $15,950 in 2023.