Inflation expected to drive up tax bracket limits in 2024

To summarize a recent article written by Michael Cohn for Accounting Today: A new report by Bloomberg Tax indicates that inflation-adjusted figures within the Tax Code are expected to rise by 5.4% in 2024, marking a reduction from this year's 7.1% but almost double the 3% seen in 2022. This comes in the wake of the U.S. Bureau of Labor Statistics releasing its latest consumer price index data. The report also suggests significant yearly hikes in certain deductions, like the foreign earned income exclusion, which is set to increase from $120,000 to $126,500. Moreover, the annual exclusion for gifts will grow from $17,000 to $18,000. These projections come in the context of changes implemented by last year's Inflation Reduction Act and the SECURE 2.0 Act, and they provide vital information for tax professionals and taxpayers to start their planning processes ahead of the official IRS announcement.