Planning Ahead for 2023

Jan 9th, 2023

Here we are… already, in 2023! Now is the perfect time to take steps to reduce your 2023 tax bill. Knowing the 2023 Federal tax brackets and standard deductions can help with tax planning strategies to avoid any tax return surprises next year.

The good news is that the Internal Revenue Service (IRS) adjusts tax brackets for inflation each year. And because of the high inflation, you may be in a lower income tax bracket for 2023. Your standard deduction will be higher as well. See the IRS news release here. 

2023 Tax Brackets

2023 Standard Deduction

Taxpayers who are at least 65 years old or blind can claim an additional standard deduction of $1,500 for 2023 ($1,850 if you're claiming the single or head of household filing status). The additional deduction amount is doubled if you're both 65 or older and blind. 

 

If you can be claimed as a dependent on another person's tax return, your 2023 standard deduction is limited to the greater of $1,250 or your earned income plus $400 (the total can't be more than the basic standard deduction for your filing status) 

 

There are plenty of things you can do right now to get ahead of the game for 2023 and we can help! Schedule your appointment today.