11/28/2023

IRS Releases 2024 Cost-of-living Adjustment Numbers

Take these adjustments into account as you implement tax-planning strategies

As the end of year focus moves to year-end tax planning strategies for 2023, it’s important to factor in the recently released 2024 cost-of-living adjustments for more than 60 tax provisions.

With inflation moderating slightly this year over last, many amounts will increase over 2023 amounts but not as much as in the previous year. Be sure to take these adjustments into account as you implement your 2023 year-end tax planning strategies.

Also, keep in mind that under the Tax Cuts and Jobs Act (TCJA), annual inflation adjustments are calculated using the chained consumer price index (also known as C-CPI-U). This increases tax bracket thresholds, the standard deduction, certain exemptions and other figures at a slower rate than was the case with the consumer price index previously used, potentially pushing taxpayers into higher tax brackets and making various breaks worth less over time. The TCJA adopted the C-CPI-U on a permanent basis.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).