IRS announces 2024 tax brackets: What you need to know

TheStreet's J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Thursday, November 9. 

Full Video Transcript Below:

J.D. DURKIN: I'm J.D. Durkin - reporting from the New York Stock Exchange.

Stocks were in red close out today's session, snapping their eight-day winning streak. The Dow closed down 200 points, the Nasdaq closed nearly one percent, and the S&P closed eight tenths of a percent lower.

This comes as markets continue to react to comments from Federal Reserve Chair Jerome Powell. He reiterated that more work would need to be done to bring inflation down to the 2% threshold, meaning higher for longer interest rates. Currently, inflation sits at 3.7. But it wasn't all doom and gloom… Powell did say that the central bank has been encouraged by the recent slowdown in economic activity.

Meanwhile, the I-R-S has introduced new thresholds for each of the seven tax brackets, as well as standard deductions. Starting in 2024, each bracket will increase by about 5.4 percent for both those filing separately or as married couples. The increase comes a year after the I-R-S expanded its tax brackets by a historically large inflation adjustment of 7 percent.

Set in 2017 by the Tax Cuts and Jobs Act, the seven federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For 2024, the 37% top rate will apply to single filers with taxable income above $609,350, and to joint filers who earn $731,200.

Also, the standard deduction will see an increase, as a reminder that's the specific dollar amount that reduces the amount of taxable income. The standard deduction for joint filers in 2024 will rise to $29,200, and single filers may claim $14,600.

That'll do it for your daily briefing. From the New York Stock Exchange, I'm J.D. Durkin with TheStreet.