The IRS has rolled out some new changes for this tax year, 2023. Some of those changes include tax-table rates and increases in standard deductions. I will discuss a few of the major things they’ve changed in this article below, so stay tuned!
The IRS is implementing changes that will be from the “Inflation Reduction Act of 2022“. Feel free to check out their publication to see all of the changes they have included.
Noticeable Changes in Revenue Procedure 2022-38:
- Married couples filing jointly will now have a higher standard deduction for the 2023 tax year. This deduction is set to $27,700 an increase of $1,800 from the previous year.
- Single tax filers or filers who are married and filing separately will also be receiving an increase in their standard deduction – Their standard deduction will now be $13,850 an increase of $900 from the previous tax year.
- Heads of household will also receive an increase of $1,400 and their standard deduction will now be $20,800 for 2023.
To see the full post about the 2023 Tax adjustments, visit the IRS’s blog post below:
IRS provides tax inflation adjustments for tax year 2023 | Internal Revenue Service
2023 Federal Tax Table Updates:
Marginal Rates will still be the following: 37%, 35%, 32%, 24%, 22%, 12% and 10%.
| Tax Tables 2023 | ||
| Rate % | Starting Income | Ending Income |
| 10% | $0 | $11,000 |
| 12% | $11,001 | $44,725 |
| 22% | $44,726 | $95,375 |
| 24% | $95,376 | $182,100 |
| 32% | $182,101 | $231,250 |
| 35% | $231,251 | $578,125 |
| 37% | $578,126 | |
Now for the fun part, we can calculate based upon our estimated Gross Income how much tax we can expect to pay (ballpark estimate).
Federal Tax Estimator Calculator – 2023:
Disclaimer – We are not CPA or tax professionals, so please do not use the information provided in this post as your sole information source. We conducted our research and provided the information in this post to the best of our knowledge, but we understand that we may have misinterpreted a piece of information and just want to let our readers be well aware of that fact! If you’ve noticed an error we’ve made, please let us know in the comments section below, thanks!
