SPRINGFIELD, Ill. (WAND) — The IRS announced higher federal income tax brackets and standard deductions for 2024. 

The agency has boosted the income threshold for each bracket to adjust for inflation. 

"The IRS every year adjusts the tax brackets and several other tax provisions for what we see of inflation. Last year we saw a dramatic increase, this year an increase nonetheless, but not quite as big as last year," said Raphael Tulino, spokesperson for the IRS. 

For 2024, the top rate of 37% applies to individuals with taxable income above $609,350 and married couples filing jointly earning $731,200. Federal income brackets show how much you'll owe on each portion of your "taxable income," calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

"Your income will be taxed at lower rates, in other words, it prevents something called bracket creep, so you don't have one going too far over the other, so these adjustments are made annually," explained Tulino. 

According to the IRS, the standard deduction will also increase in 2024, rising to $29,200 for married couples filing jointly, up from $27,700 in 2023. Single filers may claim $14,600, an increase from $13,850.

To learn more about the changes, click here. 

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