nidena
Senior Member
Joined: Dec 28, 2010 20:32:26 GMT -5
Posts: 3,649
|
Post by nidena on Nov 12, 2023 10:50:18 GMT -5
www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024Marginal rates: For tax year 2024, the top tax rate remains 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly).
The other rates are:
35% for incomes over $243,725 ($487,450 for married couples filing jointly)
32% for incomes over $191,950 ($383,900 for married couples filing jointly)
24% for incomes over $100,525 ($201,050 for married couples filing jointly)
22% for incomes over $47,150 ($94,300 for married couples filing jointly)
12% for incomes over $11,600 ($23,200 for married couples filing jointly)
The lowest rate is 10% for incomes of single individuals with incomes of $11,600 or less ($23,200 for married couples filing jointly).
|
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,339 
|
Post by Rukh O'Rorke on Nov 12, 2023 13:01:48 GMT -5
Thanks! This is welcome news!
What is everyone’s thoughts? Does this capture the amount of inflation we’ve been experiencing?
|
|
Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,508
|
Post by Tiny on Nov 13, 2023 18:38:20 GMT -5
Here's the 2023 brackets for comparison Tax rate Single Married filing jointly 10% $0 to $11,000 $0 to $22,000 12% $11,001 to $44,725 $22,001 to $89,450 22% $44,726 to $95,375 $89,451 to $190,750 24% $95,376 to $182,100 $190,751 to $364,200 32% $182,101 to $231,250 $364,201 to $462,500 35% $231,251 to $578,125 $462,501 to $693,750 37% $578,126 or more $693,751 or more I'm single and my taxable income tops out well into the 22% bracket. I'm not sure what my income will be in 2024, but I'm expecting it to give me taxable income solidly in 22% bracket - so I guess getting $2424 taxed at 12% is better than at 22% (that's 47,150 - $44,726 if I'm doing it right...) 2424 *.12 = 290.88 in taxes 2424 *.22 = 533.28 in taxes So, it looks like I'll pay $242.37 less in taxes in 2024 (the return I file in 2025). Is that good math or bad math?? *ADDED: that's not quite right - I didn't account for the money that will fall into the lower tax brackets. But it's probably not that bad of an estimate  ? |
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,339
|
Post by Rukh O'Rorke on Nov 18, 2023 12:59:12 GMT -5
Since I'm pinching pennies right now.... So when this goes into effect in 2024, I'm assuming that payroll makes adjustments and we should see a little more takehome pay |
|
iono1
Familiar Member
Joined: Jan 6, 2011 8:58:24 GMT -5
Posts: 570
|
Post by iono1 on Jan 3, 2024 20:16:55 GMT -5
I just calculated my tax return. My taxable income rose by $1,267 over 2022, the tax was $35 less than what I paid on the lower income in 2022.
|
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,339
|
Post by Rukh O'Rorke on Jan 3, 2024 20:48:34 GMT -5
I just calculated my tax return. My taxable income rose by $1,267 over 2022, the tax was $35 less than what I paid on the lower income in 2022. wait! i thought it was lower for 2024 - filing 2025? |
|
|
|
Post by minnesotapaintlady on Jan 3, 2024 21:45:45 GMT -5
I just calculated my tax return. My taxable income rose by $1,267 over 2022, the tax was $35 less than what I paid on the lower income in 2022. wait! i thought it was lower for 2024 - filing 2025? Well, the brackets adjusted for 2023 - filing in 2024 too.  |
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,339
|
Post by Rukh O'Rorke on Jan 3, 2024 23:03:13 GMT -5
wait! i thought it was lower for 2024 - filing 2025? Well, the brackets adjusted for 2023 - filing in 2024 too. wow! had no clue they could change with notice! |
|
|
|
Post by minnesotapaintlady on Jan 3, 2024 23:08:39 GMT -5
Well, the brackets adjusted for 2023 - filing in 2024 too. wow! had no clue they could change with notice! They did give notice...in October of 2022. The brackets typically change every year. |
|
TheOtherMe
Distinguished Associate
Joined: Dec 24, 2010 14:40:52 GMT -5
Posts: 28,368
Mini-Profile Name Color: e619e6
|
Post by TheOtherMe on Jan 4, 2024 10:38:50 GMT -5
It was in whatever law Congress passed. It's been years since tax brackets and things like itemized deductions don't change.
|
|
Bonny
Junior Associate
Joined: Nov 17, 2013 10:54:37 GMT -5
Posts: 7,463
Location: No Place Like Home!
|
Post by Bonny on Jan 4, 2024 10:41:05 GMT -5
Looks like we're worse off?
Last year we would have landed solidly in the 22% bracket with an income of <$190,750.
But this year that 22% bracket drops down to $94,300? That doesn't seem right.
|
|
|
|
Post by minnesotapaintlady on Jan 4, 2024 10:47:17 GMT -5
Looks like we're worse off? Last year we would have landed solidly in the 22% bracket with an income of <$190,750. But this year that 22% bracket drops down to $94,300? That doesn't seem right. 22% for incomes OVER $94,300.
It doesn't hit 24% until $201,050.
|
|
Rukh O'Rorke
Senior Associate
Joined: Jul 4, 2016 13:31:15 GMT -5
Posts: 10,339
|
Post by Rukh O'Rorke on Jan 4, 2024 11:00:45 GMT -5
wow! had no clue they could change with notice! They did give notice...in October of 2022. The brackets typically change every year. then I am confused about the conversation! so it changes with inflation each year - so HR knew the new brackets all through 2023 so I won't be anticipating anything like a surprise refund or anything. Not that I am not always surprised when the taxes are done - owe alot, refund alot, I never know what to expect!! |
|
|
|
Post by minnesotapaintlady on Jan 4, 2024 11:43:14 GMT -5
They did give notice...in October of 2022. The brackets typically change every year. then I am confused about the conversation! so it changes with inflation each year - so HR knew the new brackets all through 2023 so I won't be anticipating anything like a surprise refund or anything. Not that I am not always surprised when the taxes are done - owe alot, refund alot, I never know what to expect!! What conversation are you confused about?  Nidena just posted the new brackets for 2024, and yes, there are withholding tables for payroll that change every year too. Now, if we want to take this a whole new direction. The end of 2025 is going to be the big one. All the tax cuts sunset (except the corporate ones!) so unless they're extended or made permanent 2026 is going to be a shocker for many.
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 6,009
|
Post by haapai on Jan 4, 2024 12:37:33 GMT -5
Minn, you've posted a link to an article regarding what's sunseting before. Could you re-post or re-link it? You simply have too many posts for me to find it again.
|
|
|
|
Post by minnesotapaintlady on Jan 4, 2024 12:47:51 GMT -5
There's a lot of articles out there, just google 2026 Tax sunset. Here's one. The biggies are the standard deduction being cut in half and the personal exemptions coming back as well as the bumping up all the tax rates in the brackets.
|
|
jerseygirl
Junior Associate
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 5,398
Member is Online
|
Post by jerseygirl on Jan 4, 2024 12:54:21 GMT -5
Also small businesses aren’t taxed on 20% of profit under these rules. That will really hurt if it goes away in 26. Thinking small businesses will raise prices again to compensate?
|
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 6,009
|
Post by haapai on Jan 4, 2024 13:09:44 GMT -5
There's a lot of articles out there, just google 2026 Tax sunset. Here's one. The biggies are the standard deduction being cut in half and the personal exemptions coming back as well as the bumping up all the tax rates in the brackets.
Thanks! When I first read it, I only noticed that marginal tax rates were returning to the percentages that I was used to. I didn't get the part regarding the standard deduction potentially being cut in half. (I rather doubt that this will happen, BTW. If Congress actually gets on the stick regarding anything, keeping the standard deduction pretty much the same size and/or restoring the personal exemption is going to be at the top of their list.) |
|
haapai
Junior Associate
Character
Joined: Dec 20, 2010 20:40:06 GMT -5
Posts: 6,009
|
Post by haapai on Jan 4, 2024 14:10:42 GMT -5
Also small businesses aren’t taxed on 20% of profit under these rules. That will really hurt if it goes away in 26. Thinking small businesses will raise prices again to compensate? I rather doubt it. Most small businesses don't make a profit, at least on paper. They pay the owner/employee what they would have otherwise had to declare as profit. It's an interesting bit of algebra to see calculated.
I just can't see the circumstances where not having to pay federal taxes on 80% of the business's profit works out better than having the owner take it as income, especially when you consider state taxes and how Medicare taxes work unless you were closing down a business and selling a lot of assets that were worth significantly more than book value. |
|
jerseygirl
Junior Associate
Joined: May 13, 2018 7:43:08 GMT -5
Posts: 5,398
Member is Online
|
Post by jerseygirl on Jan 4, 2024 15:07:39 GMT -5
Also small businesses aren’t taxed on 20% of profit under these rules. That will really hurt if it goes away in 26. Thinking small businesses will raise prices again to compensate? I rather doubt it. Most small businesses don't make a profit, at least on paper. They pay the owner/employee what they would have otherwise had to declare as profit. It's an interesting bit of algebra to see calculated.
I just can't see the circumstances where not having to pay federal taxes on 80% of the business's profit works out better than having the owner take it as income, especially when you consider state taxes and how Medicare taxes work unless you were closing down a business and selling a lot of assets that were worth significantly more than book value. The money paid owner is the profit I meant. I had a small consulting business (LLC) till I closed it 2 years ago. Not having to pay income taxes on 20% was really nice |
|
