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Tag: Income Tax

Inflation means your tax bracket could soon change. Here’s what to expect.
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Inflation means your tax bracket could soon change. Here’s what to expect.

Every year, the IRS adjusts many provisions to account for the impact of inflation, ranging from individual tax brackets to how much you can save in your individual retirement account, or IRA. With inflation running near a 40-year high, experts say some big changes are in store for taxpayers. The IRS makes these changes to avoid "bracket creep" from the rising cost of living, noted American Enterprise Institute's Kyle Pomerleau, an expert on taxes. Without such adjustments, workers who received pay increases to keep up with inflation would be bumped into higher tax brackets, even though their standard of living remained the same. This year, taxpayers could see some of the biggest changes in decades due to the hottest inflation since the early 1980s, tax experts say. While the IR...