MEDIA ALERT: Wolters Kluwer details potential inflation adjusted impact for U.S. taxpayers in 2024
An early glimpse of the U.S. income tax picture for 2024, as projected under current tax law, is now available from Wolters Kluwer Tax & Accounting (TAA). The new information includes estimated ranges for each 2024 tax bracket as well as projections for a growing number of inflation-sensitive tax figures, such as the standard deduction. These annual projections are based on the relevant inflation data recently reported by the U.S. Department of Labor.
Key Tax Savings, Inflation-Adjusted Projections for 2024
Projections based on the Department of Labor's inflation figures for the 12-month period between August 31, 2022 and August 31, 2023 suggest most taxpayers will experience significant inflation-driven "tax cut" savings in comparison to their 2023 tax return filings. An example of how taxpayers will benefit on 2024 tax returns, when compared to 2023 tax returns based on the inflation adjustments provided under the current tax code, follows:
Other Inflation-adjusted Tax Estimates for 2024
Wolters Kluwer Tax & Accounting 2024 Tax Projections*
As cited earlier, Wolters Kluwer TAA projections for indexed amounts are based on the relevant inflation data released by the U.S. Department of Labor. The IRS usually releases official numbers by November each year.
Tax bracket projections are provided for illustrative purposes only and should not be used for income tax returns or other federal income tax related purposes until confirmed by the IRS later this year and are subject to amendment by Congress during the rest of 2023, or even retroactively during 2024.
Married Filing Jointly (& Surviving Spouse)
Unmarried Individuals (Other Than Surviving Spouses and Heads of Households)
Head of Household
Married Individuals Filing Separate Returns
Standard Deduction Amounts
Standard Deduction for Dependents
Gift Tax Exclusion
* These numbers are projected for the 2024 tax year and have not been confirmed by the Internal Revenue Service (www.irs.gov). They are provided for illustrative purposes only and should not be used for income tax returns or other federal income tax related purposes until confirmed by the IRS later this year, and as subject to amendment by Congress during the rest of 2023, or even retroactively during 2024.
Inflation Adjustments - Background
Since the late 1980s, the U.S. Tax Code (Code) has required that federal income tax brackets be adjusted for inflation annually, and other inflation adjustments have been inserted into the Internal Revenue Code in recent years with increasing frequency. For example, the Code now requires over 50 other inflation-driven computations to determine deduction, credit and exclusion amounts in addition to the 50 separate computations needed to inflation-adjust the tax bracket schedules each year. Estimates for any of the inflation-adjusted tax figures for 2024, of course, are also necessarily subject to any changes to the tax law that may be made by Congress over the course of the next year.
About Wolters Kluwer
Wolters Kluwer (EURONEXT: WKL) is a global leader in information, software, and services for professionals in healthcare, tax and accounting, financial and corporate compliance, legal and regulatory, and corporate performance and ESG. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services.
Wolters Kluwer reported 2022 annual revenues of €5.5 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 20,900 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.
PLEASE NOTE: The content of this media alert is designed to provide accurate and authoritative information regarding the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering legal, accounting or other professional services.
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