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Posted On: 01/10/2024 5:32:47 AM
Post# of 27253
Keep a ‘running total’ of your income
“You always want to keep a running total in your mind of how your income is changing, because it’s complex,” said Stinnett, who is also a certified public accountant.
The federal income tax brackets show how much you owe on each portion of your “taxable income,” which is calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
For 2024, the standard deduction also increased for inflation, rising to $14,600 for single filers, up from $13,850 in 2023. Married couples filing jointly may claim $29,200, up from $27,700. That change could reduce taxable income for some filers.
“You always want to keep a running total in your mind of how your income is changing, because it’s complex,” said Stinnett, who is also a certified public accountant.
The federal income tax brackets show how much you owe on each portion of your “taxable income,” which is calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
For 2024, the standard deduction also increased for inflation, rising to $14,600 for single filers, up from $13,850 in 2023. Married couples filing jointly may claim $29,200, up from $27,700. That change could reduce taxable income for some filers.
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