This article is dedicated to something we all have a love-hate relationship with: federal income taxes. It’s that slice of your paycheck that goes to Uncle Sam, but it’s also the lifeblood of funding for public goods and services. So, grab a cup of coffee, and let’s break it down together.

Think of federal income taxes like a buffet, but instead of food, it’s all about what kind of income is up for grabs by the taxman. You’ve got your earned income, which is basically the cash you hustle for, whether it’s from your 9-to-5 gig or that side hustle. Then there’s the unearned income – this is the more laid-back kind of income, like the bucks you make from investments or the interest that stacks up in your savings account.

But not everything is on the tax menu. Some items are tax-exempt – like child support, life insurance payouts, and scholarships. If you’re curious about the nitty-gritty, the IRS has the full spread listed out.

Mark your calendars, folks! Tax Day is Monday, April 15, 2024. If you’re clocking in hours for someone else, they’re already handling a chunk of your taxes each paycheck. But if you’re the captain of your own ship and raking in more than $400 net after expenses, the tax ball’s in your court.

For the self-employed squad, you’re looking at quarterly payments to the IRS. It’s a bit like a guessing game, estimating your yearly earnings and also covering your Social Security and Medicare, since there’s no employer to do the heavy lifting for you. Dive into the self-employment tax saga with the IRS’s guide if you’re keen on the details.

When tax season hits, you’ll tally up your income, figure out what you owe, and compare it to what you’ve already paid. If you’ve overpaid, hello refund! If not, you’ll need to square up.

For those filing taxes in 2024, there are several key changes and adjustments made by the IRS to be aware of, primarily due to annual inflation adjustments. These changes impact the standard deduction, tax brackets, and other tax provisions, and are designed to keep pace with inflation, thereby preventing “bracket creep” where taxpayers might find themselves in a higher tax bracket due to inflation-adjusted income increases.

For the 2024 tax year, there’s an approximate 5.4% increase in adjustments, which is somewhat lower than the previous year’s adjustment but still relatively high compared to past years. This means that some taxpayers might continue to see benefits in their tax filings.

Here are some specific changes for the 2024 tax year, as reported on tax returns filed in 2025:

1. Federal Tax Brackets and Rates: The seven federal tax brackets remain the same at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, the income thresholds for these brackets have been adjusted. For instance, married filers can earn up to $94,300 (up from $89,450 in 2023) to remain in the 12% bracket, potentially sheltering nearly $5,000 more from a higher tax rate.

2. Standard Deduction: The standard deduction amounts have been adjusted for inflation. While the specific figures for 2024 were not detailed in the sources, this adjustment typically means that taxpayers can deduct a larger amount from their taxable income, potentially lowering the tax owed.

3. Other Tax Provisions: Other parts of the tax code that often see adjustments include various credits, deductions, and retirement contribution limits. These adjustments are also aimed at keeping pace with inflation and can affect taxpayers’ filings in various ways.

Taxpayers should be aware of these changes as they can influence tax planning and filing strategies. It’s always recommended to consult with a tax professional or use updated tax software to ensure compliance with the latest tax laws and to maximize potential tax benefits.