• On Thursday, the Internal Revenue Service (IRS) unveiled its annual inflation adjustments for the 2024 tax year, which are expected to result in increased paychecks and reduced income tax burdens for many Americans.
• The significance of these adjustments lies in their role in mitigating the impact of inflation, particularly as consumers grapple with the effects of rising prices, even though inflation rates are lower than the exceptionally high levels experienced in 2022.
• These changes encompass modifications to tax returns filed in 2025, and the IRS has also updated the 2024 tax withholding tables, which dictate the amount employers should withhold from employees’ wages in their paychecks for federal taxes.

Tagged: Economy