CHARLOTTE – Here is a snapshot of what is to come for the 2023 tax year. The standard deduction for Married Filing Joint for tax year 2023 will see an $1,800 increase to $27,000 up from 2022.  Single filers and those filing separately the standard deduction will increase to $13,850 for 2023 up $900. Head of Household standard deduction will also see an increase to $20,800 up $1,400 from 2022.

The Marginal Tax Rates for 2023 will see an increase, again since 2016, for all tax brackets:

Single Filers:                                                    Married Filing Joint

10% up to $11,000                                            Up to $22,000

12% Income above $11,000                              Income above $22,000

22% Income above $44,725                              Income above $89,450

24% Income above $95,375                              Income above $190,750

32% Income above $182,100                            Income above $364,200

35% Income above $231,250                             Income above $462,500

37% Income above $578,125                             Income above $693,750

The 2023 Earned Income Tax Credit (EITC) amount will be $7,430 for tax payers with three or more qualifying children. This is up from $6,935 from the 2022 tax year. And finally, the Annual Gift Exclusion will increase to $17,000 per gift for to 2023 tax year which is an increase from $16,000 in 2022.

For more information about this article then contact Mays Concepts, LLC at (704) 526-0307, email us at maysconcepts@gmail.com, or visit/like our Facebook page https://www.facebook.com/MaysCon

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Source: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023