Note: All information refers to the 2024 tax year in which returns are filed in 2025.
With elevated (but reducing) inflation in 2023, the IRS continued to adjust many federal tax provisions upward for the 2024 tax year. Since tax season is around the corner, tax professionals should begin familiarizing themselves with some of the common provisions that may affect your clients. Below, we will discuss tax changes in 2024 for filing returns in 2025 to help you stay current when talking with your clients and preparing returns.
Tax changes 2024: Inflation adjustments to the standard deduction
The change that is most likely to affect your clients is the change to the standard deduction. The basic standard deduction amounts for 2024 tax returns1 are:
- Married couples filing jointly and qualifying surviving spouses: $29,200 (a $1,500 increase from $27,700 in 2023)
- Single taxpayers and married individuals filing separately: $14,600 (a $750 increase from $13,850 in 2023)
- Heads of households: $21,900 (a $1,100 increase from $20,800 in 2023)
The additional standard deduction for both age (65 or older) and blindness for 2024 tax returns are:
- Married couples filing jointly, married individuals filing separately, and qualifying surviving spouses: $1,550 (a $50 increase from $1,500 in 2023)
- Single taxpayers and heads of households: $1,950 (a $100 increase from $1,850 in 2023)
Individuals who can be claimed as dependents
The formula used to calculate the basic standard deduction for individuals who can be claimed as dependents also increased for 2024 tax returns. For 2024, the basic standard deduction for these individuals is the greater of:
- $1,300 (a $50 increase from $1,250 in 2023)
- Total earned income plus $450 (a $50 increase from $400 in 2023)
The basic standard deduction for individuals who can be claimed as dependents cannot exceed the applicable basic standard deduction based on filing status above. For example, most of these individuals will be single, which means their basic standard deduction for 2024 cannot exceed $14,600. However, these individuals are also eligible for the additional standard deduction for both age (65 or older) and blindness.
Please note that these increases in the standard deduction also affect the thresholds for determining whether someone must file a tax return, because such thresholds are a function of the standard deduction.
2024 Tax bracket changes for filing returns in 2025
As with the standard deduction, the IRS adjusted the 2024 tax brackets for inflation. These adjustments are used to prevent bracket creep, which occurs when inflation, rather than real increases in income, places taxpayers into higher income tax brackets or reduces the value of their credits and deductions. The statutory rates remain unchanged, with 10% being the lowest and 37% being the highest.
2024 tax bracket changes
| Tax rate | Single | Married filing jointly & Qualifying surviving spouses | Head of household | Married filing separately |
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $16,550 | $0 to $11,600 |
| 12% | $11,600 to $47,150 | $23,200 to $94,300 | $16,550 to $63,100 | $11,600 to $47,150 |
| 22% | $47,150 to $100,525 | $94,300 to $201,050 | $63,100 to $100,500 | $47,150 to $100,525 |
| 24% | $100,525 to $191,050 | $201,050 to $383,900 | $100,500 to $191,950 | $100,525 to $191,950 |
| 32% | $191,050 to $243,725 | $383,900 to $487,450 | $191,950 to $243,700 | $191,950 to $243,725 |
| 35% | $243,725 to $609,350 | $487,450 to $731,200 | $243,700 to $609,350 | $243,725 to $365,600 |
| 37% | $609,350 and up | $731,200 and up | $609,350 and up | $365,600 and up |
Tax changes 2024: Updates to AMT exemption amounts
The Alternative Minimum Tax (AMT) exemption amount has also seen inflation-driven adjustments as part of the 2024 tax changes. The exemption is the amount of income taxpayers are allowed to exempt when calculating their alternative minimum taxable income (AMTI). It’s designed to prevent low- and middle-income taxpayers from being required to pay the AMT.
in 2024, tax changes include updates to AMT exemption amounts which increased as follows:
- Single taxpayers and heads of households: $85,700 (up $4,400 from $81,300 in 2023)
- Married couples filing jointly and qualifying surviving spouses: $133,300 (up $6,800 from $126,500 in 2023
- Married individuals filing separately: $66,650 (up $3,400 from $63,250 in 2023)
AMT exemptions phase out at 25 cents per dollar once 2024 AMTI reaches the following:
- Single taxpayers, heads of households, and married individuals filing separately: $609,350 (up $31,200 from $578,150 in 2023)
- Married couples filing jointly and qualifying surviving spouses: $1,218,700 (up $62,400 from $1,156,300 in 2023)
Tax changes 2024: Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is also adjusted annually for inflation. To qualify for the EITC for the 2024 tax year, taxpayers must have earned income and adjusted gross income (AGI) below the limit, and married couples must generally file a joint tax return. The AGI limit is based on the number of qualifying children. As part of the 2024 tax changes (returns filed in 2025), the AGI limits are as follows:
| Qualifying children | Single, Head of household, and Qualifying surviving spouse | Married filing jointly |
| 0 | $18,591 | $25,511 |
| 1 | $49,084 | $56,004 |
| 2 | $55,768 | $62,688 |
| 3 or more | $59,899 | $66,819 |
The maximum credit amount is also adjusted annually for inflation. The table below shows the maximum EITC credit amounts for 2024 based on the number of qualifying dependents.
| Qualifying children | Maximum credit amount |
| 0 | $632 |
| 1 | $4,213 |
| 2 | $6,960 |
| 3 or more | $7,830 |
Taxpayers cannot claim the EITC if their investment income exceeds a certain threshold each year. This annual limitation is adjusted for inflation. For 2024, taxpayers whose investment income exceeds $11,600 ($11,000 in 2023) do not qualify for the EITC.
Tax changes 2024: Retirement savings contribution credit
The AGI limitation amounts for the retirement savings contribution credit (generally known as the saver’s credit) were also adjusted for inflation in 2024. The credit is calculated as follows in 2024:
- Married couples filing jointly:
- 50% of eligible contributions (EC) for AGI not over $46,000 ($43,500 in 2023)
- 20% of EC for AGI between $46,000 and $50,000 ($43,500 and $47,500 in 2023)
- 10% of EC for AGI between $50,000 and $76,500 ($47,500 and $73,000 in 2023)
- 0% of EC for AGI over $76,500 ($73,000 in 2023)
- Heads of households:
- 50% of EC for AGI not over $34,500 ($32,625 in 2023)
- 20% of EC for AGI between $34,500 and $37,500 ($32,625 and $35,625 in 2023)
- 10% of EC for AGI between $37,500 and $57,375 ($35,625 and $54,750 in 2023)
- 0% of EC for AGI over $57,375 ($54,750 in 2023)
- Single taxpayers, qualifying surviving spouses, and married individuals filing separately:
- 50% of eligible contributions (EC) for AGI not over $23,000 ($21,750 in 2023)
- 20% of EC for AGI between $23,000 and $25,000 ($21,750 and $23,750 in 2023)
- 10% of EC for AGI between $25,000 and $38,250 ($23,750 and $36,500 in 2023)
- 0% of EC for AGI over $38,250 ($36,500 in 2023)
Other 2024 tax changes
When filing for your clients in 2025, make sure you're also aware of these 2024 tax changes.
Foreign earned income exclusion
Expatriates also receive inflation-adjusted benefits. The maximum foreign earned income exclusion amount is $126,500 (up $6,500 from $120,000 in 2023).
Personal exemptions
The personal exemption remains at zero for 2024 because it was eliminated by the Tax Cuts and Jobs Act. However, this amount, which is adjusted for inflation, is still used as the gross income limitation for determining whether someone can qualify as a dependent. In 2024, an individual must have gross income of less than $5,050 (up from $4,700 [or $350] in 2023) to be a qualified relative.
Auto expenses
The 2024 business mileage rate is $0.67 per mile (up from $0.655 in 2023). The medical and military moving mileage rate for 2024 is $0.21 per mile (down from $0.22 in 2023). The charitable mileage rate is not adjusted for inflation annually and remained unchanged at $0.14 per mile.
Depreciation
Under Section 179, taxpayers can expense up to $1,220,000 of Section 179 property in 2024 (up $60,000 from $1,160,000 in 2023). However, this dollar limitation is reduced when the total cost of Section 179 property placed in service during the year exceeds $3,050,000 (up $160,000 from $2,890,000 in 2023).
While not related to inflation, this is a reminder that bonus deprecation for 2024 is reduced to 60% of eligible property (down from 80% in 2023).
Excess business losses
The 2024 excess business loss deduction threshold is $305,000 ($610,000 for taxpayers filing a joint return). This is up from the 2023 threshold amount of $289,000 ($578,000 for taxpayers filing a joint return).
QBI Deduction
To qualify for the maximum qualified business income deduction (QBI) of 20% in 2024, the taxpayer’s taxable income cannot exceed $191,150 ($383,900 for taxpayers filing a joint return). This income threshold is up from $182,100 ($364,200 for taxpayers filing a joint return) in 2023.
As part of the 2024 tax changes, once the taxpayer’s taxable income exceeds $241,950 ($483,900 for taxpayers filing a joint return), the QBI deduction is reduced to the wage/property limitation amount for a qualified trade/business (QTB). If the taxpayer is engaged in a specified services trade or business (SSTB), the QBI deduction is reduced to $0.
Gift and estate taxes
The following inflation adjustments apply to federal estate and gift taxes in 2024:
- The annual gift tax exclusion is $18,000 per donee (up $1,000 from $17,000 in 2023), married couples can give up to $36,000 per donee (up $2,000 from $34,000 in 2023) under the gift splitting rules
- The federal estate tax exclusion is $13,610,000 ($27,220,000 for married couples), which is up from $12,920,000 ($25,840,000 for married couples) in 2023
Learn more about 2024 tax changes with CPE
Becker offers a wide variety of CPE courses and CE for EAs to help you learn about the 2024 tax changes and other relevant topics. With both on-demand courses and live webcasts, you can get the credits you need to meet your state and credential requirements and better serve your clients. Check out these popular tax CPE options:
- Preparing Form 1040 for Tax Year 2024
- Tax Update for Individuals 2025 (2024 Filing Season)
- Earned Income Tax Credit: Rules and Common Pitfalls
With a Prime CPE subscription, you can access these plus over 750 on-demand courses and 1,000 annual webcasts to earn unlimited CPE credits.
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- https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023
- Gross income for this purpose is all taxable income in the form of money, property, and services; including unemployment compensation and certain scholarships; and does not include welfare benefits and nontaxable Social Security benefits.