On Tuesday October 18, 2022 The IRS has revealed its new federal income tax brackets and other changes for the coming 2023 tax year.
The agency makes these changes annually to account for increased or decreased inflation. While tax rates remain the same, the income limits that apply to each rate are usually adjusted.
This year, the 2023 changes will apply to tax returns filed in 2024, the IRS said.
Changes to taxes can definitely be confusing, so if you are lost on what this means for you, one of our skilled Tax Professionals at Tax Network USA will be able to assist you and answer your questions. Call us at 1(855) 225-1040 or fill out our contact form and we will contact you as soon as possible.
You can find the new brackets for both individuals and married coupled filing a joint return below:
- 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly)
- 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).
- 10% for incomes of single individuals with incomes of $11,000 or less ($22,000 for married couples filing jointly)
The IRS also announced new standard deduction amounts:
- $27,700 for married couples filing jointly, up $1,800 from the prior year
- $13,850 for single tax payers and married individuals filing separately, up $900
- $20,800 for heads of households, up $1,400.
You can find more extensive information about all of the inflation-related tax changes on the IRS website.
If you have questions about your taxes and how these new changes are going to affect you, Tax Network USA will have the answers. We are one call, or one click away.
Give us a call at 1(855) 225-1040 or fill out our contact form and Tax Network USA will contact you ASAP!