IRS Raises Tax Brackets, Boosts Seniors' Take-Home Pay

0:00The IRS has bumped up income thresholds for tax brackets in the 2026 tax year by about 2.8%, matching recent inflation. Trends. This shift means more of your income could stay in lower brackets, potentially cutting your tax bill if your earnings hold steady. Standard deductions also rose, with singles now at $16,100 and married couples filing jointly at $32,200. These changes build on annual inflation tweaks and come alongside an extra deduction for folks 65 and older. Seniors can claim an additional $6,000 per person, stacking up to $12,000 for couples where both qualify, though it. Faces out at higher incomes starting around $75,000 for singles. Experts say this is good news for retirees and older workers, as it could lead to bigger refunds or less owed, come tax time in April 20, 27. Many unfixed incomes might see more take home pay after taxes, helping offset rising costs without pushing into higher rates.

1:03Social security checks got a 2.8% cost of living boost too, but it might not fully cover jumps in health care or housing. Still, since tax brackets rose in line with that adjustment, benefits are less likely to get taxed at higher levels. Overall, these updates could lead more money in seniors pockets through the next few years, but unchanging rules on taxing social security benefits. Mean planning ahead with a pro makes sense to maximize the gains. This has been Durham News Today, powered by AI. I'm Corey with The Story.