The new year brings slightly larger paychecks to many Americans thanks to changes the IRS made to adjust for inflation.

Why it matters: Cost-of-living adjustments — such as those on taxes, wages and Social Security payments — are crucial as consumers cope with inflation and high prices.

The big picture: New IRS tax brackets and increased standard deductions go into effect Jan. 1 along with other tax inflation adjustments that include the mileage rate increasing by 1.5 cents a mile and higher contribution limits for tax-deferred retirement plans. READ MORE