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11/11/2023

2023–2024 Tax Brackets and Federal Income Tax Rates
The seven IRS tax brackets determine how much you will owe in taxes on your income
By - John Waggoner, AARP
Published November 10, 2023

Even though we’re still in the 2023 tax year, you’re probably thinking to yourself, Gosh! I wonder what the tax brackets are for the 2024 tax year?
We’ve got you covered — and there’s actually some good news, thanks to inflation. The Internal Revenue Service (IRS) adjusts tax brackets for inflation each year, and because inflation remains high, it’s possible you could fall into a lower bracket for the income you earn in 2024. Your standard deduction — the amount you can use as a deduction on your 1040 tax return without itemizing — will also be higher.
If you start now, you can make plans to reduce your 2024 tax bill. Knowing the tax brackets for 2024 can help you implement smart tax strategies, like adjusting your income tax withholding, so you don’t get caught with a big tax bill.
How the tax brackets work
In the U.S. tax system, income tax rates are graduated, so you pay different rates on different amounts of taxable income. There are seven federal income tax rates in all: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent. The more you make, the more you pay.
A tax bracket is a range of income that’s taxed at a specified rate. Importantly, your highest tax bracket doesn’t reflect how much you pay on all of your income. If you’re a single filer in the 22 percent tax bracket for 2024, you won’t pay 22 percent on all your taxable income. You will pay 10 percent on taxable income up to $11,600, 12 percent on the amount over $11,600 to $47,150, and 22 percent above that (up to $100,525).

Tax brackets for income earned in 2024
Table with 3 columns and 7 rows.
Tax rate Single filers Married filing jointly
37% $609,350 or more $731,200 or more
35% $243,725 - $609,349.99 $487,450 - $731,199.99
32% $191,950 - $243,724.99 $383,900 - $487,449.99
24% $100,525 - $191,949.99 $201,050 - $383,899.99
22% $47,150 - $100,524.99 $94,300 - $201,049.99
12% $11,600 - $47,149.99 $23,200 - $94,299.99
10% $11,599.99 or less $23,199.99 or less
Source: IRS
Married filing separately pay at same rate as singles. Source: Internal Revenue Service
Tax brackets for income earned in 2023
Table with 3 columns and 7 rows.
Tax rate Single filers Married filing jointly
37% $578,125 or more $693,750 or more
35% $231,250 - $578,124.99 $462,500 - $693,749.99
32% $182,100 - $231,249.99 $364,200 - $462,499.99
24% $95,375 - $182,099.99 $190,750 - $364,199.99
22% $44,725 - $95,374.99 $89,450 - $190,749.99
12% $11,000 - $44,724.99 $22,000 - $89,449.99
10% $10,999.99 or less $21,999.99 or less
Source: IRS

Married filing separately pay at same rate as singles. Source: Internal Revenue Service
In addition, the standard deduction is $14,600 for single filers for the 2024 tax year, up from $13,850 for 2023. The standard deduction for couples filing jointly is $29,200 in 2024, up from $27,700 in the 2023 tax year. The standard deduction is the fixed amount the IRS allows you to deduct from your annual income even if you don’t itemize your tax return. The lower your taxable income is, the lower your tax bill.
There’s even more good news for older taxpayers. Each joint filer 65 and over can increase the standard deduction by $1,550 apiece, for a total of $3,100 if both joint filers are 65-plus. In total, a married couple 65 or older would have a standard deduction of $32,300. You can also itemize individual tax deductions, for things like charitable donations, but they need to add up to more than the standard deduction to make itemizing worthwhile.
Estimate Your 2023 Taxes
Your taxes for 2023 are due April 15, 2024; your taxes for the 2024 tax year are due April 15, 2025. If you have been hit with a big tax bill in the past, you should talk with a tax adviser about how to reduce your next tax bill. It’s probably easier to have a little more money withheld from each paycheck than to face a big tax bill on April 15. A good first step is to look at how much tax is being withheld from your paycheck. The IRS has a free withholding estimator that can tell you how much you should have taken out.

04/13/2022

Issue Number: Tax Tip 2022-57
Here’s how to tell the difference between a hobby and a business for tax purposes

A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. People operate a business with the intention of making a profit. Many people engage in hobby activities that turn into a source of income. However, determining if that hobby has grown into a business can be confusing.

To help simplify things, the IRS has established factors taxpayers must consider when determining whether their activity is a business or hobby.

These factors are whether:
The taxpayer carries out activity in a businesslike manner and maintains complete and accurate books and records.

The taxpayer puts time and effort into the activity to show they intend to make it profitable.

The taxpayer depends on income from the activity for their livelihood.

The taxpayer has personal motives for carrying out the activity such as general enjoyment or relaxation.

The taxpayer has enough income from other sources to fund the activity.

Losses are due to circumstances beyond the taxpayer's control or are normal for the startup phase of their type of business.

There is a change to methods of operation to improve profitability.

Taxpayer and their advisor have the knowledge needed to carry out the activity as a successful business.

The taxpayer was successful in making a profit in similar activities in the past.

Activity makes a profit in some years and how much profit it makes.

The taxpayer can expect to make a future profit from the appreciation of the assets used in the activity.
All factors, facts, and circumstances with respect to the activity must be considered. No one factor is more important than another.

If a taxpayer receives income from an activity that is carried on with no intention of making a profit, they must report the income they receive on Schedule 1, Form 1040, line 8.

More Information:
Publication 17, Your Federal Income Tax
Publication 525, Taxable and Nontaxable Income
Publication 535, Business Expenses
Publication 334, Tax Guide for Small Business, For Individuals Who Use Schedule C

04/01/2022

BEWARE of TAX SCAMS - Remember the IRS will NEVER CALL, TEXT or EMAIL you ...

Please remember that The IRS will never:

- Send text messages or contact people through social media to get personal information or collect a tax debt.
- Demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer.
- Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
- Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Call unexpectedly about a tax refund.

03/25/2022

If you have not filed your 2018 Tax Returns, there may be some money waiting for you .... But you need to act quickly and file before the April 18 deadline, else the money is GONE, FOREVER!

IRS has $1.5 billion in refunds for people who have not filed a 2018 federal income tax return.

April 18 deadline is fast approaching to claim your refund.

WASHINGTON ― Unclaimed income tax refunds totaling almost $1.5 billion may be waiting for an estimated 1.5 million taxpayers who did not file a 2018 Form 1040 federal income tax return, but people must act before the April tax deadline, according to the Internal Revenue Service.

"The IRS wants to help people who are due refunds but haven't filed their 2018 tax returns yet," said IRS Commissioner Chuck Rettig. "But people need to act quickly. By law, there's only a three-year window to claim these refunds, which closes with this year’s April tax deadline. We want to help people get these refunds, but they need to file a 2018 tax return before this critical deadline."

The IRS estimates the midpoint for the potential refunds for 2018 to be $813 — that is, half of the refunds are more than $813 and half are less.

In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2018 tax returns, the window closes April 18, 2022, for most taxpayers. Taxpayers living in Maine and Massachusetts have until April 19, 2022. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date.

The IRS reminds taxpayers seeking a 2018 tax refund that their checks may be held if they have not filed tax returns for 2019 and 2020. In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans.

By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2018. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2018, the credit was worth as much as $6,431. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2018 were:

$49,194 ($54,884 if married filing jointly) for those with three or more qualifying children;
$45,802 ($51,492 if married filing jointly) for people with two qualifying children;
$40,320 ($46,010 if married filing jointly) for those with one qualifying child; and
$15,270 ($20,950 if married filing jointly) for people without qualifying children.

03/10/2022

Two tax credits that can help cover the cost of higher education

Higher education is important to many people and it’s often expensive. Whether it’s specialized job training or an advanced degree, there are a lot of costs associated with higher education. There are two education tax credits designed to help offset these costs - the American opportunity tax credit and the lifetime learning credit.

Taxpayers who paid for higher education in 2021 can see these tax savings when they file their tax return. If taxpayers, their spouses, or their dependents take post-high school coursework, they may be eligible for a tax benefit. To claim either credit, taxpayers complete Form 8863, Education Credits, and file it with their tax return.

These credits reduce the amount of tax someone owes. If the credit reduces tax to less than zero, the taxpayer could even receive a refund. To be eligible to claim either of these credits, a taxpayer or a dependent must have received a Form 1098-T from an eligible educational institution. There are exceptions for some students.

Here are some key things taxpayers should know about each of these credits.

The American opportunity tax credit is:

Worth a maximum benefit of up to $2,500 per eligible student.
Only available for the first four years at an eligible college or vocational school.
For students pursuing a degree or other recognized education credential.
Partially refundable. People could get up to $1,000 back.
The lifetime learning credit is:

Worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify.
Available for all years of postsecondary education and for courses to acquire or improve job skills.
Available for an unlimited number of tax years.

02/02/2022

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01/25/2022

What to consider when filing in 2022

Some key tips to file a complete and accurate 2021 tax return include:

* Gather all necessary records, such as W-2s, 1099s, receipts, canceled checks and other documents that support an item of income, or a deduction or credit, appearing on a tax return.
* Compile all year-end income documents, such as Form 1099-MISC, Miscellaneous Income; Form 1099-INT, Interest Income; Form 1099-NEC, Nonemployee Compensation; Form 1099-G, Certain Government Payments, like unemployment compensation or state tax refund; and Form 1095-A, Health Insurance Marketplace Statements.
* Taxpayers should wait to have all 2021 tax information before filing to avoid a processing delay that could slow down a tax refund.

Filing a 2021 tax return, even if you don’t have to, could put money in your pocket. While people with income under a certain amount aren't generally required to file a tax return, those who qualify for certain tax credits or already paid some federal income tax by having taxes withheld from a paycheck may qualify for a tax refund available only by filing a return.

Electronic filing and direct deposit are the way to go for the fastest refund. Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year to avoid refund delays. If you need a tax refund quickly, do not file on paper. For people with no issues with the tax return, the IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit.

Reconcile advance Child Tax Credit payments. If you received advance payments, you need to file a 2021 tax return. You will need to compare the advance Child Tax Credit payments that you received with the amount of the Child Tax Credit that you can properly claim on your 2021 tax return. In January 2022, the IRS will send you Letter 6419 with the total amount of advance Child Tax Credit payments that you received in 2021. To avoid a processing delay, you will need the total amount and should watch for your Letter 6419 from the IRS before you file.

Claim a Recovery Rebate Credit (stimulus payment). Individuals who didn't qualify for the third Economic Impact Payment or did not receive the full amount may be eligible for the Recovery Rebate Credit based on their 2021 tax situation. Those eligible will need to file a 2021 tax return, even if they don't usually file, to claim the Recovery Rebate Credit and they will need the total amount of their third Economic Impact Payment, including any supplemental or “plus-up” payments, to file their return accurately and avoid a processing delay that may delay their refund. In early 2022, the IRS will send out Letter 6475 to provide the total amount of the third Economic Impact Payments that individuals received.

The IRS saw many millions more errors on 2020 tax returns than in previous years, including those requiring special handling by an IRS employee, to correct the Recovery Rebate Credit amount. That’s why we’re highlighting how critical it is to have the total amount of the tax year 2021 third Economic Impact Payments and advance payments of the Child Tax Credit in addition to normal income documents.

What to do if your tax return from 2020 is still being processed?
Out of the nearly 168 million 2020 tax returns we received, as of December 4, 2021, there are 6.7 million unprocessed individual returns and 2.6 million unprocessed Forms 1040-X. The IRS is processing these returns in the order received and working hard to get through the inventory.

People whose tax returns from 2020 have not yet been processed can still file their 2021 tax returns. For anyone in this group filing electronically, here’s a critical point: taxpayers need their Adjusted Gross Income, or AGI, from their most recent tax return when they file electronically. For those waiting on their 2020 tax return to be processed, make sure you enter $0 (zero dollars) for last year’s AGI on the 2021 tax return.

Remember - unemployment compensation is taxable. Millions of Americans received unemployment compensation last year, and it’s fully taxable in 2021. The American Rescue Plan Act of 2021 allowed an exclusion of unemployment compensation of up to $10,200 for 2020 only. Remember for 2022, if no federal income tax is withheld from unemployment payments, it could mean an estimated tax payment should be made.

Contact eTaxFilePro at 314-942-3426 and schedule your appointment as soon as possible. We will navigate through all the pitfalls and file your tax return. We guarantee 100% satisfaction and promise that you will get the maximum possible refund or if you have to pay you will not pay a penny more than what you owe to the IRS.

01/21/2022

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12/16/2021

Charitable Contributions - Before you contribute to a CHARITY, please make sure that you are contributing to a LEGITIMATE CHARITY recognized by the IRS.
Issue Number: IR-2021-250
Inside This Issue
IRS makes Tax Exempt Organization Search primary source to get exempt organization data
IR-2021-250, Dec. 16, 2021
WASHINGTON – The Internal Revenue Service announced today that the publicly available data it provides on electronically filed Forms 990 in a machine-readable format will be available solely on the Tax Exempt Organization Search webpage.
Beginning Dec. 31, 2021, the IRS will no longer update the Form 990 Series data on Amazon Web Services. This change is to provide access to public data for organizations with tax-exempt status in one location on IRS.gov on the Charities and Nonprofits webpage.
The Tax Exempt Organization Search Bulk Data Downloads webpage has multiple data sets of information about organizations' tax-exempt status and filings with instruction on how to download.
The Form 990 series data set includes XML and individual PDF files of Form 990, Return of Organization Exempt from Income Tax; Form 990-EZ, Short Form Return of Organization Exempt from Income Tax; and Form 990-PF, Return of Private Foundation and related schedules. The IRS redacts personally identifiable tax-identification numbers to prevent the data’s misuse.
The Form 990 series returns are the primary tool for IRS to gather information about tax-exempt organizations and promote compliance with tax-law requirements. Organizations also use the Form 990 to share information with the public about their programs. Additionally, most states rely on the Form 990 to perform charitable and other regulatory oversight and to satisfy state income tax filing requirements for organizations claiming exemption from state income tax.
A tax-exempt organization must file an annual information return or notice with the IRS unless an exception applies. Annual information returns include Form 990, Form 990-EZ and Form 990-PF. Form 990-N (e-Postcard) is an annual notice.
For updates on TEOS and other issues related to charities and nonprofits, please subscribe to the Exempt Organization Update newsletter.

12/01/2021

Issue Number: IR-2021-236
Inside This Issue
Taxpayer alert as holidays, tax season approach: Watch out for scams, protect financial information; National Tax Security Awareness Week, Day 1 highlights important tips

IRS YouTube Video:
Security Measures Protect Against Tax-Related Identity Theft - English

WASHINGTON — Kicking off a special week, the Internal Revenue Service and the Security Summit partners today warned taxpayers and tax professionals to beware of a dangerous combination of events that can increase their exposure to tax scams or identity theft.

The combination of the holiday shopping season, the upcoming tax season and the pandemic create additional opportunities for criminals to steal sensitive personal or finance information. People should take extra care while shopping online or viewing emails and texts.

The IRS, state tax agencies and the nation's tax industry – working together as the Security Summit – mark today’s start of the 6th annual National Tax Security Awareness Week with tips on basic safeguards everyone should take. These can help protect against identity theft as well as help safeguard sensitive tax information that criminals can use to try filing fake tax returns and obtaining refunds.

"Don’t let this be the most wonderful time of the year for identity thieves,” said IRS Commissioner Chuck Rettig. “The approach of the holidays and tax season increases risk for taxpayers and opportunities for criminals. We urge people to be extra careful with their personal and financial information during this period while shopping online or getting suspicious emails or text. Taking a few simple steps can keep people from becoming victims of identity theft and protect their sensitive personal information needed for tax returns and refunds.”

Since 2015, the IRS and Security Summit partners have taken important steps to protect taxpayers and the nation’s tax professionals from tax-related identity theft. But progress in this area led identity thieves to evolve their tactics, trying to obtain sensitive information from taxpayers and tax professionals to help prepare fraudulent tax returns. Taxpayers can help in this fight by protecting their financial and tax information. Summit partners continue to highlight safety steps in the “Taxes.Security.Together” effort.

As part of that effort, National Tax Security Awareness Week is designed to help share information with taxpayers and tax professionals during this critical period. The special week includes special informational graphics and social media efforts on platforms including Twitter and Instagram through and .

A special emphasis for this year on social media will be focusing tax security awareness on younger and older Americans. Even if someone doesn’t file a tax return, their online interactions can lead to scam artists obtaining sensitive information and using it to try obtaining a refund.

10 key steps to protect sensitive information:

To help taxpayers and tax professionals, the Security Summit offers 10 basic steps everyone should remember during the holidays and as the 2022 tax season approaches:

Don't forget to use security software for computers, tablets and mobile phones – and keep it updated. Protect electronic devices of family members, especially teens and young children.
Make sure anti-virus software for computers has a feature to stop malware, and there is a firewall enabled that can prevent intrusions.
Phishing scams – like imposter emails, calls and texts -- are the No. 1 way thieves steal personal data. Don't open links or attachments on suspicious emails. This year, fraud scams related to COVID-19, Economic Impact Payments and other tax law changes are common.
Use strong and unique passwords for online accounts. Use a phrase or series of words that can be easily remembered or use a password manager.
Use multi-factor authentication whenever possible. Many email providers and social media sites offer this feature. It helps prevent thieves from easily hacking accounts.
Shop at sites where the web address begins with "https" – the "s" is for secure communications over the computer network. Also, look for the “padlock” icon in the browser window.
Don't shop on unsecured public Wi-Fi in places like a mall. Remember, thieves can eavesdrop.
At home, secure home Wi-Fis with a password. With more homes connected to the web, secured systems become more important, from wireless printers, wireless door locks to wireless thermometers. These can be access points for identity thieves.
Back up files on computers and mobile phones. A cloud service or an external hard drive can be used to copy information from computers or phones – providing an important place to recover financial or tax data.
Working from home? Consider creating a virtual private network (VPN) to securely connect to your workplace.
Other common warning signs; additional places for information

The IRS and Summit partners continue to see identity thieves trying to look like government agencies and others in the tax community by emailing or texting about tax refunds, stimulus payments or other items. Remember, the IRS will not call or send unexpected texts or emails about things like refunds. More information about these common scams is available at IRS Tax Tip: Common tax scams and tips to help taxpayers avoid them.

The IRS and Security Summit partners are sharing YouTube videos on security steps for taxpayers. The videos can be viewed or downloaded at Easy Steps to Protect Your Computer and Phone and Here’s How to Avoid IRS Text Message Scams.

Employers also can share Publication 4524, Security Awareness for Taxpayers (.pdf), with their employees and customers while tax professionals can share with clients.

In addition, the Summit partners remind people these security measures include mobile phones – an area that people sometimes can overlook. Thieves have become more adept at compromising mobile phones. Phone users also are more prone to open a scam email from their phone than from their computer.

Taxpayers can check out security recommendations for their specific mobile phone by reviewing the Federal Communications Commission's Smartphone Security Checker. Since phones are used for shopping and even for doing taxes, remember to make sure phones and tablets are just as secure as computers.

During the pandemic, there continue to be numerous scams related to COVID-19. These can be attempts to gain sensitive personal or financial information. The Federal Trade Commission also has issued alerts; consumers can keep atop the latest scam information and report COVID-related scams.

The IRS, state tax agencies, the private sector tax industry, including tax professionals, work in partnership as the Security Summit to help protect taxpayers from identity theft and refund fraud. This is the first in a week-long series of tips to raise awareness about identity theft. See IRS.gov/securitysummit for more details.

Learn how the IRS is partnering with the other organizations to combat identity theft refund fraud to protect the nation’s taxpayers.

05/25/2021

Many Families with Children to Get Monthly Payment of Refundable Child Tax Credit

Many Families with Children to Get Monthly Payment of Refundable Child Tax Credit

A provision of the American Rescue Plan is being readied for action, targeting nearly 90 percent of American households with children to receive monthly payments of the Child Tax Credit.

The Internal Revenue Service and the Department of the Treasury expect to send out the first monthly payments of the expanded Child Tax Credit (CTC) on July 19.

Payments are targeted to some 39 million households, which would cover 88% of the children in the U.S.

How will it work?
Monthly payouts for the Child Tax Credit were made possible by the American Rescue Plan that was passed into law in March of this year. The law increased the maximum cap to $3,600 for children under age 6 and up to $3,000 per child for those between age 6 and 17.

The ARP also made the credit advanceable, enabling regular payments to qualified families.

The recurring CTC payments will be made on the 15th of each month, unless the 15th is a weekend or holiday. Those families who get the credit via direct deposit will be able to plan around the regular receipt of the payment.

Qualifying families receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and up.

Projections suggest the plans for the CTC could cut child poverty by more than half.

Direct deposit is the way to go
The monthly payments will go out to families - benefiting more than 65 million children—by way of direct deposit, paper check or debit cards.

The IRS says it’s committed to making the most of the direct deposit delivery option for fast, secure delivery.

Most taxpayers won’t have to take any action to get advance CTC payments. However, the IRS and Treasury say they’ll continue to work with partner groups to make even more families aware of the benefit.

More information on how taxpayers can access the Child Tax Credit will be available soon at IRS.gov/childtaxcredit2021.

Or just call your friendly tax advisor at eTaxFilePro - (314) 942-3426.