The IRS has released its annual inflation adjusted tax numbers for 2024. Below we have highlighted some of the most relevant updates for tax brackets, retirement contributions, and estate and gifting limits, as compared to 2023 figures.

Individual Income Taxes
Income Tax Brackets – Single Tax Filer
2024 2023
10% Up to $11,600 Up to $11,000
12% $11,601 to $47,150 $11,001 to $44,725
22% $47,151 to $100,525 $44,726 to $95,375
24% $100,526 to $191,950 $95,376 to $182,100
32% $191,951 to $243,725 $182,101 to $231,250
35% $243,726 to $609,350 $231,251 to $578,125
37% Over $609,350 Over $578,125
Standard Deduction $14,600 $13,850
Long-Term Capital Gains
0% Up to $47,025 Up to $44,625
15% $47,026 to $518,900 $44,626 to $492,300
20% Over $518,900 Over $492,300
Income Tax Brackets – Married Filing Jointly
2024 2023
10% Up to $23,200 Up to $22,000
12% $23,201 to $94,300 $22,001 to $89,450
22% $94,301 to $201,050 $89,451 to $190,750
24% $201,051 to $383,900 $190,751 to $364,200
32% $383,901 to $487,450 $364,201 to $462,500
35% $487,451 to $731,200 $462,501 to $693,750
37% Over $731,200 Over $693,750
Standard Deduction $29,200 $27,700
Long-Term Capital Gains
0% Up to $94,050 Up to $89,250
15% $94,051 to $583,750 $89,251 to $553,850
20% Over $583,750 Over $553,850
Retirement Plan Contribution Limits
2024 2023
401(k), 403(b), 457 plans $23,000 $22,500
–   50+ catch up contribution $7,500 $7,500
IRA – Traditional & Roth $7,000 $6,500
–   50+ catch up contribution $1,000 $1,000
SIMPLE IRA $16,000 $15,500
–   50+ catch up contribution $3,500 $3,500
Defined Contribution Plan $69,000 $66,000
Gift & Estate Tax
2024 2023
Annual Gift Exclusion $18,000 $17,000
Federal Estate Tax & Gift Tax Exemption $13,610,000 $12,920,000
Maximum Transfer Tax Rate 40% 40%
Annual Gift Exclusion to Non-U.S. Citizen Spouse $185,000 $175,000

 

 

 

In addition to the tax figures above, the Net Investment Income Tax (NIIT) applies at a rate of 3.8% to certain net investment income of individuals, estates, and trusts that have income above the statutory threshold amounts. The threshold amounts are $200,000 for single tax-payers and $250,000 for married filing jointly.

While many of the brackets moved favorably in 2024, it should also be noted that the amount of income subject to Social Security payroll taxes increased from $160,200 to $168,600.

If you have any questions, please feel free to contact us or schedule a conversation.

Author:
Thomas Burleigh, CFP®, CTFA
Wealth Manager
Tom Burleigh, CFP, Wealth Manager

Disclosure:

This article does not contain any legal or tax advice. You should always consult with your attorney, accountant, or other professional advisors before changing or implementing any tax, investment, or estate planning strategy. This is not an offer or a solicitation to buy or sell securities. This may not be construed as investment advice and does not give investment recommendations. Any opinion included in this article constitutes the judgment of CMH Wealth Management, LLC as of the date of this report and are subject to change without notice. 

Additional information about CMH Wealth Management is also available on the SEC’s website at www.adviserinfo.sec.gov. Past performance is not a guarantee of future results.

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