The IRS is raising tax brackets by 5.5% for the 2024 tax season, which could result in lower taxes or a bigger refund for many individuals. The standard deduction is also increasing, making it simpler for more Americans to file their taxes. Additionally, there are new tax breaks for electric cars and energy-efficient home improvements.
One major change this tax season is the IRS testing out its own tax filing software, called “IRS direct file,” which allows taxpayers in 13 states to file their taxes online for free directly with the IRS. This could lead to quicker refunds and no preparation fees.
Financial expert Ted Jenkin suggests paying attention to the tax policies of the Democrats and Republicans, as the federal government heavily relies on personal income tax and payroll tax for revenue. Importantly, Jenkin advises considering how these policies may affect one’s financial future, especially given the national debt.
