Covering for Bidenomics, the IRS rolled out inflation adjustments ahead of tax collection that could mean more take-home pay and the avoidance of “bracket creep.”
No matter President Joe Biden’s insistence to corporate media that his economic policies have benefited Americans, reality has proven them more boondoggle than boon. Covering for the costs incurred, the Internal Revenue Service announced adjustments for the 2024 tax year that included higher limits for federal income tax brackets as well as standard deductions.
A release from the federal agency in November noted, “The tax year 2024 adjustments described below generally apply to income tax returns filed in 2025,” and specified the items of “greatest interest to most taxpayers” included their filing deductions.
The standard deduction for married couples filing jointly will increase from $27,700 to $29,20o and from $13,850 to $14,600 for individuals. Additionally, heads of households would see their standard deduction up $1,100 from the prior year to $21,900.
“It means you’re going to be able to have a little bit more income within each individual tax bracket,” Bushka Wealth Management president Cole Bruner told WSAW. This particularly benefitted those who may have received a raise to accommodate rising inflation only to find themselves taking a hit by entering a new tax bracket — bracket creep.
As an example, someone filing individually in 2023 making just over $45,000 would see income over that mark taxed at 22%. With the adjustment raising the bracket to $47,150 that person would now see those dollars over $45,000 taxed at only 12%.
Similarly, “The tax year 2023 maximum Earned Income Tax Credit amount is $7,830 for qualifying taxpayers who have three or more qualifying children, an increase…from $7,430 for tax year 20223 The revenue procedure contains a table providing maximum EITC amount for other categories, income thresholds and phase-outs.”
As previously reported, the IRS had also delayed the tax-reporting rule on income garnered through payment apps like PayPal and Venmo until after the presidential election, and the threshold of $600 had been changed to $5,000.
IRS Commissioner Danny Werfel had claimed, “Taking this phased-in approach is the right thing to do for the purposes of tax administration, and it prevents unnecessary confusion as we continue to look at changes to the Form 1040. It’s clear than an additional delay for tax year 2023 will avoid problems for taxpayers, tax professionals and others in this area.”
However, many saw the move as little more than an effort to get through the critical upcoming election without further proof that Biden had failed to live up to his promise to not increase taxes on American households making less than $400,000 per year.
The president himself slammed corporate media over the weekend when he was questioned on the economic outlook for the country.
“All good. Take a look!” he told the press outside the White House before adding, “Start reporting in the right way.”