Individual

Federal Income Tax (IRS):

  • Form 1040: This is the primary federal tax form for individuals.

  • Tax Brackets: The U.S. has a progressive tax system, meaning different portions of your income are taxed at different rates. For the 2024 tax year (the one you’ll file in 2025), the federal income tax rates range from 10% to 37%. Here’s a quick look at the brackets for single filers and married filing jointly:

    Tax RateSingle Filers (Taxable Income)Married Filing Jointly (Taxable Income)
    10%$0 to $11,600$0 to $23,200
    12%$11,601 to $47,150$23,201 to $94,300
    22%$47,151 to $100,525$94,301 to $201,050
    24%$100,526 to $191,950$201,051 to $383,900
    32%$191,951 to $243,725$383,901 to $487,450
    35%$243,726 to $609,350$487,451 to $731,200
    37%Over $609,350Over $731,200
    (Source: IRS, Tax Foundation for 2024 tax year)  

Standard Deduction vs. Itemized Deductions: 

You’ll choose whether to take the standard deduction (a set amount that reduces your taxable income) or itemize deductions (listing specific deductible expenses like mortgage interest, state and local taxes, charitable contributions, etc.). For 2024, the standard deduction amounts are:

      • Single: $14,600

      • Married Filing Jointly: $29,200

      • Head of Household: $21,900

    • Credits: Tax credits directly reduce the amount of tax you owe, dollar for dollar. Examples include the Child Tax Credit, Earned Income Tax Credit, Education Credits, etc.

    • Estimated Taxes: If you have income from sources not subject to withholding (like self-employment income, rental income, or significant investment income), you may need to pay estimated federal income tax quarterly.