Writy.
  • Home
  • Business
  • Entertainment
  • Finance
  • Politics
  • Sports
  • Tech
  • World
  • Shop
  • Contact Us
No Result
View All Result
  • Home
  • Business
  • Entertainment
  • Finance
  • Politics
  • Sports
  • Tech
  • World
  • Shop
  • Contact Us
No Result
View All Result
Writy.
No Result
View All Result
Here are the federal income tax rates and brackets for 2023

Here are the federal income tax rates and brackets for 2023

Chrys Hendricks by Chrys Hendricks
October 19, 2022
in Business
0
Share on FacebookShare on Twitter

You might also like

Okta Reports Strong Earnings but Stock Falls

Treasury’s $1 Trillion Debt Deluge Threatens Market Calm

June 7, 2023
Boeing delays shipments of the 787 Dreamliner for a flaw in the tail section of the planes

Boeing delays shipments of the 787 Dreamliner for a flaw in the tail section of the planes

June 7, 2023

The IRS released inflation-adjusted marginal rates and brackets for 2023 on Tuesday, and many workers will see higher take-home pay in the new year as less tax is withheld from their paychecks.

Additionally, the agency released the standard deduction for next year. It is increasing by $900 to $13,850 for single taxpayers, and by $1,800 for married couples, to $27,700. For heads of household, the 2023 standard deduction will be $20,800. That’s an increase of $1,400.

Here are the marginal rates for tax year 2023, depending on your tax status.

Single filers

– 10%: income of $11,000 or less
– 12%: income between $11,001 and $44,725
– 22%: income between $44,726 and $95,375
– 24%: income between $95,376 and $182,100
– 32%: income between $182,101 and $231,250
– 35% income between $231,251 and $578,125
– 37%: income greater than $578,125

Married filing jointly

– 10%: income of $22,000 or less
– 12%: income between $22,001 and $89,450
– 22%: income between $89,451 and $190,750
– 24%: income between $190,751 and $364,200
– 32%: income between $364,201 and $462,500
– 35% income between $462,501 and $693,750
– 37%: income greater than $693,750

Additionally, the maximum Earned Income Tax Credit for 2023 is $7,430 for those who have three or more qualifying children. The maximum contribution to a health care flexible spending account is also increasing, from $2,850 to $3,050.

Wealthy Americans will also be able to exclude significantly more assets from the estate tax in 2023. Individuals will be able to transfer up to $12.92 million tax-free to their descendants, up from just over $12 million in 2022. A married couple can pass on double that. And the annual exclusion for gifts increases to $17,000.

Each year the IRS adjusts dozens of important tax provisions based on a formula set by Congress. Given soaring inflation rates over the past year, the adjustments for 2023 are more significant than in past years.

Assuming all else stays the same, this means that workers will see higher take-home pay starting in January.

The agency has yet to announce the maximum contribution amounts to 401(k) plans or the income thresholds for retirement accounts for 2023. Last week, the Social Security Administration announced a decades-high cost-of-living-adjustment, also due to inflation.

This story was originally featured on Fortune.com

More from Fortune:

The economist who just won the Nobel Prize warns the Fed will cause ‘all kinds of trouble’

Microsoft’s remote-work-friendly CEO puts his finger on the big problem with working from home

Gen Z activists who dumped 2 cans of tomato soup on Van Gogh’s ‘Sunflowers’ plead not guilty in court

South Korea stands to lose billions from making K-pop superstars BTS do military service

Chrys Hendricks

Chrys Hendricks

Related Stories

Okta Reports Strong Earnings but Stock Falls

Treasury’s $1 Trillion Debt Deluge Threatens Market Calm

by Chrys Hendricks
June 7, 2023
0

Treasury’s $1 Trillion Debt Deluge Threatens Market Calm

Boeing delays shipments of the 787 Dreamliner for a flaw in the tail section of the planes

Boeing delays shipments of the 787 Dreamliner for a flaw in the tail section of the planes

by Chrys Hendricks
June 7, 2023
0

FILE - The Boeing 787 Dreamliner taxis after its landing at Le Bourget airport, east of Paris, upon its presentation...

Cathie Wood Boosts Coinbase Stake as SEC Crypto Crackdown Widens

Cathie Wood Boosts Coinbase Stake as SEC Crypto Crackdown Widens

by Chrys Hendricks
June 7, 2023
0

(Bloomberg) -- Cathie Wood’s funds boosted their holdings of Coinbase Global Inc. as shares slumped after the Securities and Exchange...

Billionaire Paul Singer Says Recession Is Likely, but Stays Heavily Invested in These 2 Stocks

Billionaire Paul Singer Is Heavily Invested in These 2 ‘Strong Buy’ Stocks Despite Recession Fears

by Chrys Hendricks
June 7, 2023
0

Investors hoping to get a good readout on where the markets might be heading – switch off now, as Billionaire...

Next Post
China’s Underground Market for Chips Draws Desperate Automakers

China's Underground Market for Chips Draws Desperate Automakers

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Contact Us
  • Privacy Policy

© 2022 | Multiplexnews.net

No Result
View All Result
  • Home
  • Business
  • Entertainment
  • Finance
  • Politics
  • Sports
  • Tech
  • World
  • Shop
  • Contact Us

© 2022 | Multiplexnews.net