With 2023 almost wrapped up and tax returns due in just a few months on Monday, April 15, 2024, we’ll review the IRS tax brackets, standard deductions, EITC and other credits that apply to income earned in 2023.
We’ll also preview changes made by the IRS that will take effect January 1st for what you make in 2024, for those who want to know what income tax rates, deductions, and credits will look like next year.
What Is the Goal for IRS Changes for 2023-2024 Tax Returns?
For both 2023 tax year (filing deadline April 2024) and 2024 tax year (filing deadline April 2025) returns, the IRS has a goal to help offset higher inflation with lower taxes.
From allowing you to make more money at the same tax rate to increasing standard deductions, credits, exclusions, and contribution amounts, the IRS is emphasizing giving taxpayers additional opportunities to both reduce taxable income and the total taxes they’ll pay.
2023-2024 IRS Tax Brackets by Filing Status
Adjusting for inflation, the IRS has increased the income limits for single, married filing jointly, and married filing separately tax brackets. This means you may be able to earn more income and not have to pay the IRS taxes at a higher tax rate.
Single Tax Brackets
| 2023 Income | 2024 Income | |
| 10% Tax Bracket | less than $11,000 | less than $11,600 |
| 12% Tax Bracket | $11,000 – $44,725 | $11,600 – $47,150 |
| 22% Tax Bracket | $44,725 – $95,375 | $47,150 – $100,525 |
| 24% Tax Bracket | $95,375 – $182,100 | $100,525 – $191,950 |
| 32% Tax Bracket | $182,100 – $231,250 | $191,950 – $243,725 |
| 35% Tax Bracket | $231,250 – $578,125 | $243,725 – $609,350 |
| 37% Tax Bracket | more than $578,125 | more than $609,350 |
Married Filing Jointly
| 2023 Income | 2024 Income | |
| 10% Tax Bracket | less than $22,000 | less than $23,200 |
| 12% Tax Bracket | $22,000 – $89,450 | $23,200 – $94,300 |
| 22% Tax Bracket | $89,450 – $190,750 | $94,300 – $201,050 |
| 24% Tax Bracket | $190,750 – $364,200 | $201,050 – $383,900 |
| 32% Tax Bracket | $364,200 – $462,500 | $383,900 – $487,450 |
| 35% Tax Bracket | $462,500 – $693,750 | $487,450 – $731,200 |
| 37% Tax Bracket | more than $693,750 | more than $731,200 |
Married Filing Separate
| 2023 Income | 2024 Income | |
| 10% Tax Bracket | less than $11,000 | less than $11,600 |
| 12% Tax Bracket | $11,000 – $44,725 | $11,600 – $47,150 |
| 22% Tax Bracket | $44,725 – $95,375 | $47,150 – $100,525 |
| 24% Tax Bracket | $95,375 – $182,100 | $100,525 – $191,950 |
| 32% Tax Bracket | $182,100 – $231,250 | $191,950 – $243,725 |
| 35% Tax Bracket | $231,250 – $346,875 | $243,725 – $365,600 |
| 37% Tax Bracket | more than $346,875 | more than $365,600 |
Note that tax brackets for Heads of Households have also been adjusted by the IRS.
You can view the tax rates for all incomes and filing statues here:
- 2023: https://irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023
- 2024: https://irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024
2023-2024 IRS Standard Deductions by Filing Status
Here are the IRS standard deductions for 2023 and 2024 tax years based on tax filing status:
- Single or Married Filing Separately: $13,850 for 2023 and $14,600 for 2024 (+$750).
- Married Filing Jointly: $27,700 for 2023 and $29,200 for 2024 (+$1,500)
- Heads of Households: $20,800 for 2023 and $21,900 for 2024 (+$1,100)
2023-2024 Earned Income Tax Credit
You may be able to lower your taxes with an earned income tax credit (EITC), depending on age, number of qualifying children, adjusted gross income (AGI), investment income, and whether you file as single, heads of households, or married filing jointly.
The IRS has the following EITC amounts for 2023 tax year and 2024 tax year returns:
- No qualifying children: $600 for 2023 and $632 for 2024 (+$32)
- One qualifying child: $3,995 for 2023 and $4,213 for 2024 (+$218)
- Two qualifying children: $6,604 for 2023 and $6,960 for 2024 (+$356)
- Three or more qualifying children: $7,430 for 2023 and $7,830 for 2024 (+$400)
Qualifying children for EITC eligibility must:
- Have a Social Security number
- Be permanently disabled at any time during the year (any age) OR
- Be 19 years of age or younger OR
- Be 24 years of age or younger and be a full-time student at a college, university, or vocational school for at least five months during the year
- Be a biological, adopted, foster, or stepchild OR
- Be a sibling, half-sibling, or stepsibling OR
- Be a nephew, niece, or grandchild
What Other Deductions and Credits Did the IRS Change for 2023-2024 Tax Returns?
In addition to deductions that eligible tax filers can take for charitable contributions, mortgage interest, self-employment expenses, and medical expenses, you may also be eligible for the following:
- Flexible Spending Account Contributions (FSA): $3,050 for 2023 and $3,200 for 2024 (+$150)
- Retirement Savings Contributions for 401k and IRA (Saver’s Credit): $22,500 for 401k and $6,500 for IRA for 2023, and $23,000 for 401k (+$500) and $7,000 for IRA (+$500) for 2024
- Alternative Minimum Tax (AMT): $81,300 for 2023 and $85,700 for 2024 (+$4,400)
- Gift Exclusion: $17,000 for 2023 and $18,000 for 2024 (+$1,000)
- Estate Exclusion: $12,920,000 for 2023 and $13,610,000 for 2024 (+$690,000)
- Adoption Credit: $15,950 for 2023 and $16,810 for 2024 (+$860)
- Foreign Income Exclusion: $120,000 for 2023 and $126,500 for 2024 (+$6,500)
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