Presented by Paystrubmakr.com By John Wolf
We offer our customers precisely calculation by our check stub generator. You can learn about the standard Deduction and tax brackets in this article.
Standard Deduction
The Internal Revenue Service (IRS) provides two main options to reduce taxable income: the standard Deduction and the itemization. Most taxpayers prefer the standard Deduction as it is less complex than itemizing. However, this does not necessarily mean it is always the best option. Create pay stubs online with IRS rulls
To help you understand the standard Deduction, let me briefly explain it, who it is most suitable for, and the standard deduction amounts for the tax year 2024.
The standard deduction is a fixed amount the IRS allows taxpayers to reduce from their adjusted gross income. This deduction helps reduce taxable income and varies depending on the taxpayer’s filing status. If you are blind or over 65, you may be eligible for a higher additional standard deduction. However, if another taxpayer can claim you as a dependent, you may receive a lower standard deduction. Generally, most people can take the standard deduction without qualifying deductions or tax credits. However, some situations may disqualify certain taxpayers from taking the standard deduction. When you make paystub online you do not need to calculate the standard deductions, it is automatically calculated.
What Is Adjusted Gross Income (AGI)?
Maximizing your Adjusted Gross Income (AGI) is critical to reducing your tax payment and keeping more of your hard-earned money. By subtracting certain expenses from your total income, you can effectually lower your taxable income and pay less in taxes. Take advantage of all deductions and credits available to achieve the highest AGI possible. Keep more money in your pockets.
Standard deduction example
Married couples jointly filing with an AGI of $125,000 get a standard deduction of $27,700, bringing their taxable income down to $97,300.
Standard deduction for year 2024
| Filing status | 2024 standard deduction |
|---|---|
| Single | $14,600. |
| Married, filing separately | $14,600. |
| Married, filing jointly; qualifying widow/er | $29,200. |
| Head of household | $21,900 |
What Are Tax Brackets?
The tax system in the United States is a progressive tax system. It means that different portions of your income are taxed at different rates. Generally, the more taxable income you have, the higher the tax rate you will be subject to. If you want to learn more about how this system works and how it could affect you, read this article about tax brackets. When you make pay stubs online the brackets are calculated automatically.
How brackets are calculated?
Lets see the sample of a Single filing.
| Single filer Brackets calculation | |||
| Tax to pay | |||
| Tax percentage | Taxable amount | Per bracket | Tax on 700,000 |
| 10% | 0 to 11,600 | 11,600 | 1,160 |
| 12% | 11601 to 47150 | 35,549 | 1,392 |
| 22% | 47151 to 100525 | 53,374 | 11,742 |
| 24% | 100526 to 191950 | 91,424 | 21,942 |
| 32% | 191951 to 243725 | 51,774 | 16,568 |
| 35% | 243726 to 609350 | 365,624 | 127,968 |
| 37% | 609351 to 700000 | 90,649 | 33,540 |
| Total tax to pay | 214,312 | ||
For all 2024 tax brackets and all filers, the income limits will be adjusted for inflation as follows:
| Tax Rate | Single Filers | Married Individuals Filing Joint | Heads of Households |
|---|---|---|---|
| 10% | $0 to $11,600 | $0 to $23,200 | $0 to $16,550 |
| 12% | $11,600 to $47,150 | $23,200 to $94,300 | $16,550 to $63,100 |
| 22% | $47,150 to $100,525 | $94,300 to $201,050 | $63,100 to $100,500 |
| 24% | $100,525 to $191,950 | $201,050 to $383,900 | $100,500 to $191,950 |
| 32% | $191,950 to $243,725 | $383,900 to $487,450 | $191,950 to $243,700 |
| 35% | $243,725 to $609,350 | $487,450 to $731,200 | $243,700 to $609,350 |
| 37% | $609,350 or more | $731,200 or more | $609,350 or more |
Source: IRS. We make paycheck stubs by IRS guidness
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