IRS updates tax brackets, deductions, and contribution caps for 2024

The IRS has released the new income tax brackets and standard deduction amounts for tax year 2024, which will be relevant for tax returns filed in early 2025. The changes are designed to protect taxpayers from the effects of inflation, but they will not significantly alter a person's tax burden. The standard deduction will increase for individuals, married couples filing jointly, and heads of households. The federal income tax code will continue to have seven tax rates, each applying to specific income ranges. The IRS has also increased the contribution limits for Flexible Spending Accounts, 401(k)s, and IRAs for 2024.