Inflation impacts more than the grocery store.

Getting a big refund on your tax filing? It may be time to change your tax withholding or your estimated payments as the standard deduction for 2024 has increased. Per the IRS in Revenue Procedure 2023-34: “the standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, an increase of $1,500 from tax year 2023. For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, an increase of $750 from 2023; and for heads of households, the standard deduction will be $21,900 for tax year 2024, an increase of $1,100 from the amount for tax year 2023.”1

This could mean that you would want to reduce your federal tax withholding to insure you get more money throughout the year instead of waiting for the refund.

1: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024#:~:text=For%20single%20taxpayers%20and%20married,amount%20for%20tax%20year%20202