.png)
The Internal Revenue Service announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. The changes could mean tax savings for some taxpayers next year.
Highlights of changes in Revenue Procedure
The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700 up $1,800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022.
Top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly).
Foreign earned income exclusion is $120,000 up from $112,000 for tax year 2022.
Annual exclusion for gifts increases to $17,000 up from $16,000 for calendar year 2022.
The monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $300, up $20 from the limit for 2022.
The other rates are:
35% for incomes over $231,250 ($462,500 for married couples filing jointly);
32% for incomes over $182,100 ($364,200 for married couples filing jointly);
24% for incomes over $95,375 ($190,750 for married couples filing jointly);
22% for incomes over $44,725 ($89,450 for married couples filing jointly);
12% for incomes over $11,000 ($22,000 for married couples filing jointly)
Although the IRS makes these adjustments every year, many of them are particularly important this year due to the strong inflation. As average income growth behind the strong increase in prices, Americans are grappling with persistently high inflation, which is eroding their purchasing power.
Comentarios