Everwise Investment Services

2024 Tax Tables

2024 tax rates, schedules, and contribution limits

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Income Tax

Married/Filing Jointly or Qualifying Widow(er)s

If taxable income is over But not over The tax is Of the amount over
$0 $23,200 $0 + 10% $0
$23,200 $94,300 $2,320 + 12% $23,200
$94,300 $201,050 $10,852 + 22% $94,300
$201,050 $383,900 $34,337 + 24% $201,050
$383,900 $487,450 $78,221 +32% $383,900
$487,450 $731,200 $111,357 + 35% $487,450
$731,200   $196,669.50 + 37% $731,200

 

Single

If taxable income is over But not over The tax is Of the amount over
$0 $11,600 $0 + 10% $0
$11,600 $47,150 $1,160 + 12% $11,600
$47,150 $100,525 $5,426 + 22% $47,150
$100,525 $191,950 $17,168.50 + 24% $100,525
$191,950 $243,725 $39,110.50 + 32% $191,950
$243,725 $609,350 $55,678.50 + 35% $243,725
$609,350   $183,647.25 + 37% $609,350

 

Estates and trusts

If taxable income is over But not over The tax is Of the amount over
$0 $3,100 $0 + 10% $0
$3,100 $11,150 $310 + 24% $3,100
$11,150 $15,200 $2,242 + 35% $11,150
$15,200   $3,659.50 + 37% $15,200

Tax on corporations and other businesses

  • 21% tax rate applied on C-corporation income
  • Taxpayers may generally deduct up to 20% of the qualified business income (QBI) of S corporations, partnerships, and sole proprietorships (reduced by net capital gain and qualified dividends), subject to limitations:
    — Deduction generally not available for a Specified Service Trade or Business (SSTB) if taxable income exceeds $241,950 (single) or $483,900 (married/ filing jointly); the deduction is subject to a phaseout unless taxable income is at or below $191,950 (single) or $383,900 (married/filing jointly)
    — If taxable income exceeds $241,950 (single) or $483,900 (married/filing jointly), the deduction is limited to the lesser of: (a) 20% of QBI or (b) the greater of (i) 50% of W-2 wages paid by each business or (ii) 25% of W-2 wages paid by each business plus 2.5% of the unadjusted basis of qualified property; wage and qualified property limitations are not applicable to taxable incomes at or below $191,950 (single) or $383,900 (married/filing jointly) and are fully phased in once taxable income exceeds $241,950 (single) or $483,900 (married/filing jointly)

Employer retirement plans

Tax on capital gains and qualified dividends

Single Married/Filing jointly/Qualifying widow(er) Tax rate
$0–$47,025 $0–$94,050 0%
Over $47,025 but not over $518,900 Over $94,050 but not over $583,750 15%
Over $518,900 Over $583,750 20%

Additional 3.8% federal net investment income (NII) tax applies to individuals on the lesser of NII or modified AGI in excess of $200,000 (single) or $250,000 (married/filing jointly and qualifying widow(er)s). Also applies to any trust or estate on the lesser of undistributed NII or AGI in excess of the dollar amount at which the estate/trust pays income taxes at the highest rate ($15,200).

Kiddie Tax*

Child’s unearned income above $2,600 is generally subject to taxation at the parent’s marginal tax rate; unearned income above $1,300 but not more than $2,600 is taxed at the child’s tax rate.

* Applies if either parent of the child is alive at the close of the taxable year, the child does not file a joint return for the taxable year, and the child either (a) has not attained age 18 by close of the year, (b) has attained age 18 before the close of the year, but the child’s earned income represents not more than one half of support needs and the child has not attained age 19 by the close of the year, or (c) the child is a full-time student who has not attained age 24 as of the close of the year and the child’s earned income represents not more than one half of support needs.

Preferential rates on long-term capital gains and qualified dividends are applicable; 3.8% federal NII tax is imposed separately on each child if modified AGI exceeds threshold amounts stated above.

Child Tax Credit

  • $2,000 per “qualifying child” (who has not attained age 17 during the year); phased out as modified AGI exceeds $400,000 (married/filing jointly) or $200,000 (all other); $1,700 per child is refundable
  • $500 nonrefundable credit for qualified dependents other than qualifying children (with some modified AGI phaseouts)

Standard deductions

Filing Status Annual Additional
age 65+ or blind
Married/Filing jointly and qualifying widow(er)s $29,200 $1,550
Single $14,600 $1,950

Health savings accounts contribution limits

Filing Status Limit
Individual $4,150
Family $8,300

Catch-up contribution: Taxpayers who are 55 or older in 2024 may contribute an additional $1,000, or a total of $5,150 for individuals and $9,300 for families.

Deduction for mortgage interest

  • Deduction on interest for qualifying mortgages up to $750,000 ($375,000 if married/filing separately); homes under agreement before 12/15/17 for purchase prior to 1/1/18 (provided purchase occurred by 4/1/18) grandfathered under previous $1,000,000 ($500,000 if married/filing separately) limits
  • Interest on home equity lines of credit (HELOC) deductible in certain cases where proceeds are utilized to acquire or improve a residence

Deduction for state and local taxes

Individuals may deduct state and local income (or sales) taxes and real and personal property taxes up to $10,000 ($5,000 if married filing separately) in the aggregate.


Maximum Qualified Long-Term-Care insurance premiums eligible for deduction

Age 40 or less >40, ≤50 >50, ≤60 >60, ≤70 Over 70
  $470 $880 $1,760 $4,710 $5,880

Traditional IRAs

Maximum annual contribution

  • Lesser of compensation or $7,000
  • Up to $7,000 contribution can also be made for nonworking spouse
  • Catch-up contributions (age 50 and over): $1,000

Traditional IRA deductibility table

Filing Status Covered by employer's
retirement plan
Modified AGI 2023 Modified AGI 2024 Deductibility
Single No Any amount Any amount Full
  Yes $73,000 or less $77,000 or less Full
  Yes $73,001 - $82,999 $77,001 - $86,999 Partial
  Yes $83,000 or more $87,000 or more None
Married/Jointly Neither spouse covered Any amount Any amount Full
Married/Jointly Both spouses covered $116,000 or less $123,000 or less Full
    $116,001 - $135,999 $123,001 - $142,999 Partial
    $136,000 or more $143,000 or more None
Married/Jointly Yes, but spouse is not covered $116,000 or less $123,000 or less Full
    $116,001 - $135,999 $123,001 - $142,999 Partial
    $136,000 or more $143,000 or more None
Married/Jointly No, but spouse is covered $218,000 or less $230,000 or less Full
    $218,001 - $227,999 $230,001 - $239,999 Partial
    $228,000 or more $240,000 or more None

Roth IRAs

Maximum annual contribution

  • Lesser of compensation or $7,000
  • Up to $7,000 contribution can also be made for nonworking spouse
  • Catch-up contributions (age 50 and over): $1,000

Contribution eligibility

Modified AGI is less than $146,000 (single) or $230,000 (married/filing jointly); phaseouts apply if modified AGI is $146,000–$160,999 (single) or $230,000–$239,999 (married/filing jointly).

Deductibility

Contributions to Roth IRAs are not deductible.

Conversion eligibility

There is no income restriction on eligibility for a Roth IRA conversion.

Social Security Benefit

Base amount of modified AGI causing Social Security benefits to be taxable

Filing Status Up to 50% taxable Up to 85% taxable
Married/Filing jointly $32,001 - $44,000 >$44,000
Single $25,001 - $34,000 >$34,000

Maximum earnings before Social Security benefits are reduced

* Interim annual limit of $59,520 applies for whole months prior to attaining full retirement age during year individual reaches full retirement age ($1 withheld for every $3 above limit).

Maximum compensation subject to FICA taxes

OASDI and HI tax rate: 12.4% OASDI and 2.9% HI (15.3% combined) for self-employed; 6.2% and 1.45% (7.65% combined) for employees. An additional 0.9% HI tax imposed on individuals with wages or self-employment income in excess of $200,000 (single and qualifying widow(er)s) or $250,000 (married/ filing jointly).

Death/gifts occurring in 2024*

(Subtract applicable credit from calculated tax)

If gift/gross is over But not over The tax is Of the amount over
$0 $10,000 $0 + 18% $0
$10,000 $20,000 $1,800 + 20% $10,000
$20,000 $40,000 $3,800 + 22% $20,000
$40,000 $60,000 $8,200 + 24% $40,000
$60,000 $80,000 $13,000 + 26% $60,000
$80,000 $100,000 $18,200 + 28% $80,000
$100,000 $150,000 $23,800 + 30% $100,000
$150,000 $250,000 $38,800 + 32% $150,000
$250,000 $500,000 $70,800 + 34% $250,000
$500,000 $750,000 $155,800 + 37% $500,000
$750,000 $1,000,000 $248,300 + 39% $750,000
$1,000,000   $345,800 + 40% $1,000,000

* Annual gift tax exclusion: individual, $18,000; married electing split gifts, $36,000. Combined lifetime gift tax and gross estate tax exemption: $13,610,000. GST tax exemption: $13,610,000.

Higher education tax credits

Modified AGI phaseouts for American Opportunity Tax Credit

Modified AGI phaseouts for Lifetime Learning Credit

AMT exemptions

Phases out beginning with alternative minimum taxable income over $1,218,700 (married/filing jointly and qualifying widow(er)s) or $609,350(single filers); AMT ordinary income rate increases from 26% to 28% for alternative minimum taxable income over $232,600 (single; married/filing jointly; and qualifying widow(er)s).

Sources: IRS and Social Security Administration updates 2023.

All information presented on this page is for educational purposes only and doesn’t constitute tax, legal or accounting advice. It is to be considered as general information, not recommendations. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

**With a Roth IRA, you contribute after-tax dollars, your money grows tax-free, and you can generally make tax- and penalty-free withdrawals after age 59½. With a Traditional IRA, you contribute pre- or after-tax dollars, your money grows tax-deferred, and withdrawals are taxed as current income after age 59½. Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

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