Money, Money, Money

Did your paycheck change this year? The IRS has updated the withholding thresholds for 2024. They do this every year, in theory, to match inflation. This will all be related to the taxes you file in 2025 for the year 2024. The standard deduction increased by $1,500 for married filing jointly couples to $29,200. The standard deduction for single and married filing separately increased by $750 to bring it to $14,600. The increase for head of household filers is $1,100 which brings it to $21,900. These adjustments flow through to the withholding tables that payroll personnel and software base the withholding in your paycheck on. Sometimes it takes software a paycheck or two to catch up, so you may not see all the changes immediately or it won't be obvious because other deductions restart in the new year for benefits you may have through your workplace. It's always good to double-check your pay stub but especially in January as things are getting adjusted for the new year.