New Tax Brackets For Tax Year 2023 Released

Last week the IRS announced inflation adjustments for the tax year 2023 that would apply to returns in 2024.

Marginal Rates for the tax year 2023

· 10% for incomes under $11,000.

o $22,000 for married filing jointly

· 12% for incomes over $11,000.

o $22,000 for married filing jointly

· 22% for incomes over $44,725.

o $89,450 for married filing jointly

· 24% for incomes over 95,375.

o $190,750 for married filing jointly

· 32% for incomes over $182,100

o $364,200 for married filing jointly

· 35% for incomes over $231,250

o $462,500 for married filing jointly

The Alternative Minimum Tax exemption for the tax year is $81,300 and phases out at $578,150 for single taxpayers. For married taxpayers filing jointly that amount is $126,500 and phases out at $1,156,300.

The Earned Income Tax Credit is $7,430 for taxpayers who have three or more qualifying children.

Also noted in the changes was the standard deduction rising with married couples filing jointly now being $27,700 and for single/head of household, taxpayers rising to $13,850.

Please click here for a full list of 2023 annual inflation adjustments covering more than 60 tax provisions.

If you have any questions, please contact the Professionals at The Center for Financial, Legal, & Tax Planning Inc. at (618) 997-3436.