Federal Income Tax Brackets 2024 With Tax Estimator Template

Federal Income Tax Brackets 2024 for taxes due in April 2025 or October 2025 with an extension. There are 7 tax brackets and 7 tax rates for each type of filing status.

Understanding these tax brackets and tax rates will help you easily define your tax liability or refund for the financial year 2024.

What are Tax Brackets?

Every year, the IRS announces multiple tax brackets based on which a US citizen or alien pays his income tax. Tax Brackets are various ranges of taxable income on which the tax rates are applicable and the filer calculates the income tax.

Tax Brackets for Single, Married Filing Separately, Married Filing Jointly, and Head of Household are different.

What Are Tax Rates?

Tax Rates mean the percentage on which the IRS charges the income tax for different filing statuses. Different Tax Rates apply to different income categories.

Moreover, individuals having lower taxable income have to pay income tax on lower tax rates. The lowest tax rate is 10% and the highest tax rate is 37%.

The Tax Cuts and Jobs Act of 2017 will keep federal tax rates unchanged until the end of 2025. However, the IRS will adjust income thresholds for these tax brackets annually to account for inflation.

What is Taxable Income?

The formula to calculate Taxable Income is as follows:

Taxable Income = Gross Income – Adjustments – Deductions – Exemptions

You can use our ready-to-use Federal Income Tax Calculator to compute your taxable income.

Gross Income

Gross income includes income from the following sources:

Wages
Dividends
Capital gains
Business income
Retirement distributions
Interest or returns from Investment
Other income from side hustles

Adjustments to Derive Adjusted Gross Income (AGI)

IRS allows some initial deductions to adjust your income. The income after the deduction of adjustments is called Adjusted Gross Income or AGI.

Adjustments include the following:

Educator expenses.
IRA deduction.
Student loan interest deduction.
Tuition and fees deduction.
Health savings account deduction.
Moving expenses.
50% of self-employment tax.
Self-employed Health Insurance Deduction.
Other Self-Employed Plans (SEP, SIMPLE, etc).
Penalties paid for early withdrawal of savings.
Alimony paid.

Deductions

There are two types of deductions: Standard Deductions and Itemized Deductions. The taxpayer can choose between both. Usually, filers having low income opt for Standard Deductions as it allows them to get more deductions.

Standard Deduction for Federal Income Tax 2024:

Single Filer & Married Filing Separately: $14,600.

Married Filing Jointly: $29,200.

Head of Household: $21,900.

Additional Amount for Married Seniors: $1,550

Additional Amount for Unmarried Seniors: $1,950

Itemized Deductions are a sort of Allowable Deduction in the federal income tax system that considers actual costs rather than a predetermined amount of the Standard Deduction.

Itemized Deductions for Federal Income Tax 2024:

Medical and dental expenses, as well as some medical insurance premiums, surpass 7.5% of your AGI
State and Local Income Taxes.
Local and State Sales Taxes
Property taxes on real estate.
Personal Property Taxes are a type of property tax that is imposed on individuals. (For example, automobile registration fees)
Mortgage interest rates.
Interest on investments is paid. (For example, margin interest)
Donations to Charities and Churches in Cash
Losses incurred as a result of a catastrophe or theft.
Employee costs that are not repaid by your employer.
Tax preparation fees paid.
Gaming losses are proportional to gambling wins.

Every year there is a limit for itemized deductions. Earlier, the amount of itemized deductions that taxpayers with AGIs over a threshold could claim was restricted.

These restrictions known as the Pease limitations are postponed by the TCJA from 2018 to 2025.

Alternative Minimum Tax (AMT) 2024

The Alternative Minimum Tax (AMT) was established in the 1960s to ensure that high-income taxpayers pay their fair share of taxes. This parallel tax system forces high-income taxpayers to calculate their taxes twice: once under the regular income tax system and again under the AMT. The taxpayer must then pay the higher amount.

The AMT uses a different definition of taxable income, known as Alternative Minimum Taxable Income (AMTI). To shield low- and middle-income taxpayers from the AMT, a significant portion of their income is exempt from AMTI. However, this exemption gradually decreases for high-income taxpayers. The AMT imposes a tax rate of 26% or 28%.

For 2024, the AMT exemption amounts are:

$85,700 for single filers

$133,300 for married couples filing jointly

The 28% AMT rate applies to excess AMTI above:

$232,600 for all taxpayers

$116,300 for married couples filing separately

The AMT exemptions begin to phase out at a rate of 25 cents per dollar of income earned once AMTI exceeds:

$609,350 for single filers

$1,218,700 for married couples filing jointly

Exemptions

Tax exemptions are a type of deduction that the IRS provides to all federal income tax filers. These tax exemptions, like allowable deductions, lower your taxable income.

Taxpayers sometimes overlook these tax exemptions and end up paying extra taxes. Knowing about these exemptions might help you lower your tax bill.

Every year, the IRS adjusts the tax exemption amount for inflation. On their tax returns, every taxpayer has the right to seek an exemption.

Federal Income Tax Brackets 2024

Below are the Federal Income Tax Brackets and Tax Rates for the year 2024 based on the filing status.

Federal Income Tax Brackets 2024 For Single Filers

Tax Rates 2024	Taxable Income Brackets 2024	Tax Liability 2024
10%	$0 to $11,600	10% of taxable income between $0 to $11,600
12%	$11,601 to $47,150	$1,160 + 12% of the amount above $11,600 to $47,150
22%	$47,150 to $100,525	$5426 + 22% of the amount above $47,151 to $100,525
24%	$100,526 to $191,950	$17,168.50 + 24% of the amount above $100,526 to $191,950
32%	$191,951 to $243,725	$39,110.50 + 32% of the amount above $191,951 to $243,725
35%	$243,726 to $609,350	$55,678.50 + 35% of the amount over $243,726 to $609,350
37%	$609,351 or more	$183,647.50 + 37% of the amount above $609,351

Federal Income Tax Brackets 2024 For Married Filing Separately

Tax rate 2024	Taxable Income Brackets 2024	Tax Liability 2024
10%	$0 to $11,600	10% of taxable income between $0 to $11,600
12%	$11,601 to $47,150	$1,160 + 12% of the amount above $11,600 to $47,150
22%	$47,150 to $100,525	$5426 + 22% of the amount above $47,151 to $100,525
24%	$100,526 to $191,950	$17,168.50 + 24% of the amount above $100,526 to $191,950
32%	$191,951 to $243,725	$39,110.50 + 32% of the amount above $191,951 to $243,725
35%	$243,726 to $365,600	$55678.50 + 35% of the amount over $243,725 to $365,600
37%	$365,601 or more	$98334.50 + 37% of the amount above $365,601

Federal Income Tax Brackets 2024 For Married Filing Jointly

Tax rate 2024	Taxable income bracket 2024	Tax Liability 2024
10%	$0 to $23,200	10% of taxable income
12%	$23,201 to $94,300	$2,320 + 12% of the amount above $23,201 to $94,300
22%	$94,301 to $201,050	$10,852 + 22% of the amount above $94,301 to $201,050
24%	$201,051 to $383,900	$34,337 + 24% of the amount above $201,051 to $383,900
32%	$383,901 to $487,450	$78,221 + 32% of the amount above $383,901 to $487,450
35%	$487,451 to $731,20	$111,357 + 35% of the amount above $487,451 to $731,20
37%	$731,201 or more	$196,669.50 + 37% of the amount above $731,201

Federal Income Tax Brackets 2024 For Head of the Household

Tax rate 2024	Taxable income bracket 2024	Tax Liability 2024
10%	$0 to $16,550	10% of taxable income
12%	$16,551 to $63,100	$1,655 + 12% of the amount above $16,551 to $63,100
22%	$63,101 to $100,500	$7,241 + 22% of the amount above $63,101 to $100,500
24%	$100,501 to $191,950	$15,469 + 24% of the amount above $100,501 to $191,950
32%	$191,951 to $243,700	$37,417 + 32% of the amount above $191,951 to $243,700
35%	$243,701 to $609,350	$53,977 + 35% of the amount above $243,701 to $609,350
37%	$609,351 or more	$181,954.50 + 37% of the amount above $609,351

Source: www.IRS.gov

Tax Credits 2024

Once you have calculated your taxable income and applicable tax liability you can reduce the amount by taking available tax credits from the IRS.

These include:

Adoption Tax Credit

$16,810

Child Tax Credit

$1,700

Earned Income Credit

The maximum amount of credit:

No qualifying children: $632
1 qualifying child: $4,213
2 qualifying children: $6,960
3 or more qualifying children: $7,830

Education Credits

An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC).

Foreign Tax Credit

File Form 1116, Foreign Tax Credit, to claim the foreign tax credit if you are an individual, estate or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession.

Corporations file Form 1118, Foreign Tax Credit—Corporations, to claim a foreign tax credit.

Child and Dependent Care Credit

The total expenses that you may use to calculate the credit may not be more than $3,000 (for one qualifying individual) or $6,000 (for two or more qualifying individuals).

Source: Publication 503, Child and Dependent Care Expenses

Credit for the Elderly and Disabled

A credit for taxpayers:

aged 65 or older OR retired on permanent and total disability and received taxable disability income for the tax year; AND
with an adjusted gross income OR the total of nontaxable Social Security, pensions annuities, or disability income under specific limits

The credit ranges between $3,750 and $7,500.

Source: Publication 524, Credit for the Elderly or the Disabled

Residential Energy Credit

If you invest in renewable energy for your home such as solar, wind, geothermal, fuel cells, or battery storage technology, you may qualify for an annual residential clean energy tax credit.

Source: www.irs.gov

Electric Vehicle Tax Credit

If you place in service a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax credit.

For vehicles placed in service from January 1 to April 17, 2023:

$2,500 base amount
Plus $417 for a vehicle with at least 7 kilowatt hours of battery capacity
Plus $417 for each kilowatt hour of battery capacity beyond 5 kilowatt hours
Up to $7,500 total

In general, the minimum credit will be $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with a minimum of 7 kilowatt hours of battery capacity.

For vehicles placed in service on April 18, 2023, and after:

Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:

$3,750 if the vehicle meets the critical minerals requirement only
$3,750 if the vehicle meets the battery components requirement only
$7,500 if the vehicle meets both

A vehicle that doesn’t meet either requirement will not be eligible for a credit.

For eligibility criteria please visit IRS Publication 5905.

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Disclaimer: This article is for educational purposes only and shall not be considered tax advice. Kindly consult a CPA or tax consultant.