2024 Rates and How to Calculate What You Owe
IRS Issues Reminders for Taxpayers in 2024
WASHINGTON - The Internal Revenue Service today reminded taxpayers that they must file their 2023 tax returns by April 15, 2024. The agency also released the 2024 income tax brackets, standard deduction amounts, and other key tax information.
The 2024 income tax brackets for single filers are as follows:
- 10% on taxable income up to $11,000
- 12% on taxable income between $11,001 and $44,725
- 22% on taxable income between $44,726 and $96,875
- 24% on taxable income between $96,876 and $153,125
- 32% on taxable income between $153,126 and $222,500
- 35% on taxable income between $222,501 and $588,333
- 37% on taxable income over $588,333
The standard deduction amounts for 2024 are as follows:
- $13,850 for single filers
- $27,700 for married couples filing jointly
- $19,400 for heads of household
Taxpayers can use the IRS's online tax calculator to estimate their 2024 tax liability.
2024 Cryptocurrency Tax Changes
The IRS also issued guidance on the taxation of cryptocurrency for 2024. Under the new rules, cryptocurrency will be treated as property for tax purposes. This means that gains or losses from the sale or exchange of cryptocurrency will be taxed at the same rates as gains or losses from the sale or exchange of other types of property.
The IRS also clarified that cryptocurrency airdrops and forks will be treated as taxable income. Airdrops are free distributions of cryptocurrency, while forks are the creation of a new cryptocurrency from an existing blockchain.
Conclusion
The IRS's 2024 tax reminders and cryptocurrency guidance provide taxpayers with important information they need to file their 2023 tax returns. Taxpayers should consult with a tax professional or refer to the IRS's website if they have any questions about their tax obligations.
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