The standard deduction for 2023 rises to the following amounts:
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Married couples filing jointly $27,700
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Single filers and married filing separately $13,850
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Heads of households $20,800
The 2023 tax rate brackets are as follows:
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10% for incomes $11,000 or less ($22,000 for MFJ)
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12% for incomes over $11,000 ($22,000 for MFJ)
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22% for incomes over $44,725 ($89,450 for MFJ)
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24% for incomes over $95,375 ($190,750 for MFJ)
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32% for incomes over $182,100 ($364,200 for MFJ)
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35% for incomes over $231,250 ($462,500 for MFJ)
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37% for incomes over $578,125 ($693,750 for MFJ)
- Foreign earned income exclusion for 2023 is $120,000.
- Annual exclusion for gifts in 2023 increases to $17,000.
- Wage base for 2023 social security will increase to $160,200.
- Deferral contribution for 401(k), 403(b) for 2023 is $22,500 plus $7,500 if over age 50.
*Reminder for 2022 Year-end: If an S Corporation shareholder please report medical insurance through your W-2. *
*Disclaimer Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, Bailey, Carr CPAs would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services*
