On Tuesday, October 18, 2022, the Internal Revenue Service revealed inflation-adjusted marginal rates and brackets for 2023, and many employees will enjoy increased take-home pay in the new year as less tax is taken from their paychecks.
New Income Tax Brackets For 2023
Here are the marginal rates for the tax year 2023, depending on your tax status.
2023 Marginal Tax Brackets For, Single Individuals Married Filing Jointly
2023 Marginal Tax Brackets For, Married Filing Jointly
Tax Inflation Adjustments For Tax Year 2023
For the tax year 2023, the standard deduction for married couples filing jointly climbs to $27,700, up $1,800 from the previous year. The standard deduction for single taxpayers and married persons filing separately increases by $900 to $13,850 in 2023, and the standard deduction for heads of households increases by $1,400 to $20,800 in 2023, up from $20,800 in 2022.
For the calendar year 2023, the yearly exclusion for gifts rises to $17,000, up from $16,000 in the calendar year 2021.
The maximum contribution to a health care flexible spending account is also increasing, from $2,850 to $3,050.
The maximum Child Tax Credit is $2,000 per qualified child and is not inflation-adjusted. The refundable amount of the Child Tax Credit is inflation-adjusted and will rise from $1,500 to $1,600 in 2023.
The maximum Earned Income Tax Credit amount for qualifying taxpayers with three or more qualifying children is $7,430 in the tax year 2023, up from $6,935 in the tax year 2022.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.
