The Internal Revenue Service has released the inflation-adjusted
numbers for tax year 2023. Click here for the Revenue Proclamation.
Here are some of the highlights.
For 2023 -
THE STANDARD DEDUCTION
Single and Married Filing Separate = $13,850
Married Filing Joint and Surviving Spouse = $27,700
Head of Household = $20,800
The Standard Deduction for a dependent is the greater of (1) $1,250,
or (2) the sum of $400 and the individual's earned income (not to exceed
$13,850).
The additional Standard Deduction amount for the age 65 or older
or blind is $1,500 for married individuals and $1,850 for Single and Head of
Household.
PERSONAL EXEMPTION AMOUNT
There is no longer a personal exemption deduction. However, the amount of the gross income
limitation for determining if a person is a qualifying relative is $4,700.
LONG-TERM CARE PREMIUM DEDUCTION AGE-BASED LIMITATIONS
40 or
less = $480
More
than 40 but not more than 50 = $890
More
than 50 but not more than 60 = $1,790
More
than 60 but not more than 70 = $4,770
More than 70 =
$5,960
QUALIFIED DIVIDENDS AND LONG-TERM CAPITAL
GAINS TAX 0% INCOME THRESHOLD
Single and Married Filing Separate = $44,625
Married Filing Joint and Surviving Spouse = $89,250
Head of Household = $59,750
CHILD TAX CREDIT
The refundable portion of the Child Tax Credit is $1,600.
ESTATE AND GIFT TAX
The annual gift tax exclusion is $17,000 per person. The estate tax exemption, also known as the
unified credit, is $12,920,000.
The 2023 retirement account numbers will be released separately. I will let you know these numbers when they
are available.
TTFN
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