Key tax amounts 2024
Tax brackets
The income tax brackets for individuals are much wider for 2024 because of inflation during the 2023 fiscal year. Tax rates are unchanged. To view income tax brackets for the 2023 and 2024 tax years, see 2023 and 2024 Tax Brackets and Federal Income Tax Rates.
Capital gains and qualified dividends
The favorable tax rates on long-term capital gains and qualified dividends do not change. But the income thresholds to qualify for the various rates go up for 2024. The 0% tax rate applies at taxable incomes up to $94,050 for joint filers, $63,000 for heads of household and $47,025 for single filers. The 20% tax rate starts at $583,751 for joint filers, $551,351 for heads of household and $518,901 for single filers. The 15% tax rate is for filers with taxable incomes between the 0% and 20% break point.
Minimum tax
AMT exemptions rise for 2024 to $133,300 for couples and $85,700 for singles and household heads. The exemption phaseout zones start at $1,218,700 for couples and $609,350 for others. The 28% AMT rate kicks in above $232,600.
Kiddie tax
The kiddie tax has less bite in 2024. The first $1,300 of unearned income of a child under age 19 (under age 24 if a full-time student) is tax-free. The next $1,300 is taxed at the child’s rate. Any excess is taxed at the parent’s rate.
Fringe Benefits
Employees covered by health flexible savings accounts can defer up to $3,200. The cap on tax-free employer-provided parking for 2024 is $315 a month. The exclusion for mass transit passes and commuter vans match that amount. U.S. taxpayers working abroad have a $126,500 income exclusion for 2024, provided they meet all the eligibility requirements.
HSAs
There are record-high HSA contribution limits for 2024:
- Individuals can contribute up to $4,150 to their HSA accounts for 2024.
- Families can contribute up to $8,300.
For more information about 2024 medical savings account contribution limits, see FSA and HSA Contribution Limits for 2024.