Sunday, January 19, 2025

US Standard Deduction 1-20-25

US Income Tax Standard Deductions need to be adjusted up to cover the systemic inflation we have experienced. The Median Household Incomes for Taxpayers who are under age 24 and over age 65 are the lowest. On IRS 1040 for 2024, the Standard Deduction for married couples filing jointly is $29,200, Head of Household $21,900 and Single Filers $14.600. These Standard Deductions were established in 2017 and need to be increased by 20% to cover the cumulative inflation households were saddled with from 2021 through 2024. 

The pending Income Tax Laws should include a 20% hike retroactive to include the 2024 Income Tax. This would raise the 2024 Standard Deductions to $35,040 for Joint Filing Couples, $26,200 for Head of Household and $17,520 for Single Filers.

In the United States, median household income by age typically increases until people reach their 40s and 50s, and then decreases as people approach retirement. 

Median household income by age

35–44 years: In 2023, the median income for this age group was $101,300 

45–54 years: In 2023, the median income for this age group was $110,700 

55–64 years: In 2023, the median income for this age group was $90,640 

65–74 years: In 2023, the median income for this age group was $61,830 

Under 24 years: Households headed by people in this age group have the lowest median income 

Over 75 years: Households headed by people in this age group have a low median income 

Factors that affect median household income

Career stage: People are usually most well-established in their careers in their 40s and 50s, which is when their household income peaks 

Retirement: As people approach retirement, their income decreases as their salaries are replaced by retirement income 

Household size: The size of the household can affect median household income 

https://www.google.com/search?q=us+median+household+income+

Norb Leahy, Dunwoody GA Tea Party Leader

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