Financial advisor explains paycheck increase during 2024

CHATTANOOGA, Tenn. (WDEF) — If you haven’t gotten a paycheck yet this year, you may be in for a pleasant surprise.

It may be slightly larger than your paychecks last year, even if you didn’t get a raise.

In November, the IRS announced inflation adjustments to the tax code.

This includes changes to the standard deduction and individual income brackets.

Those took effect as we rang in 2024, and will apply to tax returns we file in 2025.

Depending on your withholdings, and if you’re set to make roughly what you made last year, you could see a small increase in your paychecks this year.

Financial advisor with Apogee Wealth Partners LLC, Chris Hopkins said, “Unless you got a raise that was bigger than the inflation rate, at least part of your withholding is going to be a little bit less. Because you’re not going to quite make it into that next bracket. So what that basically means, is a lot of people are going to see a little bit bigger bottom line on their paychecks in 2024.”

Hopkins predicts inflation to continue to decrease this year, reaching similar numbers to before the pandemic.

He explained inflation got as high as 9% during 2020, and is starting to level down to 3%.