Tax season 2024: How much do I have to pay the IRS?
It’s that time of year again: the 2024 tax season will begin on January 29 and end on April 15. Here’s how to know how much you should pay the IRS.
The Internal Revenue Service has announced that the 2024 tax season will begin on Jan. 29. On this date, the tax agency will begin to accept and process declarations corresponding to fiscal year 2023.
Taxpayers have April 15 as the deadline to file their return and pay their taxes. Those who request an extension have until October 15 to submit it. How do you know how much taxes you need to pay? Here’s how to determine that amount.
How much taxes do I have to pay the IRS?
Each year, the IRS sets tax rates; that is, the percentages of taxes paid based on taxpayers’ taxable income. Taxable income is defined as any income that is subject to federal taxes, whether earned or not.
Your tax rate depends on your marital status, among other factors. For fiscal year 2023, these are the percentages:
- 37% for income over $578,125 ($693,750 for married couples filing jointly).
- 35% for income over $231,250 ($462,500 for married couples filing jointly).
- 32% for income over $182,100 ($364,200 for married couples filing jointly).
- 24% for income over $95,375 ($190,750 for married couples filing jointly).
- 22% for income over $44,725 ($89,450 for married couples filing jointly).
- 12% for income over $11,000 ($22,000 for married couples filing jointly).
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How you can reduce the amount of taxes to pay
Under federal tax law, taxpayers can deduct some personal expenses. This reduces the amount of taxable income which may reduce the amount of tax payable or increase the amount of the refund.
In this area, the IRS offers two options, the standard deduction or itemizing your deductions.
The standard deduction is a predetermined amount of income that you are allowed to deduct from your taxable income without having to answer any questions about the deduction. According to official information from the IRS, the standard deduction amounts for tax year 2023 are the following:
- $13,850 for single taxpayers or couples filing separately, under 65 years of age
- $20,800 for heads of household
- $27,700 for couples filing jointly, under 65 years of age
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The only cases in which the standard deduction does not apply are the following:
- If a taxpayer and his or her spouse are married but want to file their taxes separately and their spouse plans to itemize their deductions.
- If a taxpayer or his or her spouse (if filing jointly) was a nonresident alien at any time during the tax year.
- If a taxpayer files a return that covers a period of less than one year because their annual accounting period has changed.
In these cases or if the taxpayer so wishes, they can choose to itemize their deductions. If personal deductions exceed the standard deduction amount, the taxpayer receives a greater benefit by further decreasing their taxable income and placing them in a lower tax rate.
People with income below the standard deduction amounts are not required by law to file a tax return. However, they can file to be eligible for certain tax credits.