2023 projected taxes

2023 Projected Tax Brackets

It’s never too early to start planning ahead!  As we enter the fourth quarter, it’s time to think about the bottom line for 2022, but also it’s good to know about what will the tax brackets be in 2023.  Today we’ll break down the tax brackets for 2023 for those curious financial planners out there!

According to the 2023 Projected U.S. Tax Rates forecast, with inflation adjustments made the amounts in the tax code will rise about 7.1%.  This is higher than double the last years increase, which was just 3%.

Source:  CPA Practice Advisor. (Via Boomberg Tax.)

What You Need to Know About 2023 Tax Brackets

Other projections made in the report that are noteworthy include that a many key deductions for those paying taxes will see an increase from the previous year.  One that we are big fans of with some staff residing in the Cayman Islands tax jurisdiction, is the foreign income exclusion is looking at being raised to $120,000.  Another is the annual exclusion for gifts of cash going up $1,000 to $17,000.

The Bloomberg report is an annual report that provides taxpayers an early notice of any tax savings they could take advantage of.

Get the full report here.

Other adjustments  you should be aware of include:

Individual Income Tax Rate Brackets 

Married Filing Jointly and Surviving Spouses

 2023 Tax Rate Bracket Income Ranges (Projected)
  • 10% – $0 to $22,000
  • 12% – $22,000 to $89,450
  • 22% – $89,450 to $190,750
  • 24% – $190,750 to $364,200
  • 32% – $364,200 to $462,500
  • 35% – $462,500 to $693,750
  • 37% – $693,750 or more

Unmarried Individuals – Other Than Surviving Spouses / Head of Households

Projected 2023 Tax Rate Bracket Income Ranges
  • 10% – $0 to $11,000
  • 12% – $11,000 to $44,725
  • 22% – $44,725 to $95,375
  • 24% – $95,375 to $182,100
  • 32% – $182,100 to $231,250
  • 35% – $231,250 to $578,125
  • 37% – $578,125 or more

Standard Deduction

Projected 2023 Standard Deduction by Filing Status
  • Married Filing Jointly/Surviving Spouses – $27,700
  • Heads of Household – $20,800
  • All Other Taxpayers – $13,850

Alternative Minimum Tax (AMT)

Projected 2023 AMT Exemption Amount by Filing Status
    • Married Filing Jointly/Surviving Spouses – $126,500
    • Unmarried Individuals (other than Surviving Spouses) – $81,300
    • Married Filing Separately – $63,250
    • Estates and Trusts – $28,400

Again, this source is the Bloomberg

Arthur Karter

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Hi, I’m Arthur, and nobody wants to wake up in their 50s like me that they are in serious debt with minimal assets. This wake-up call forced me to reevaluate everything. After going through the school of Hard Knocks, I’m ready to help you by sharing the best retirement choices and how they differ from all the same-old, same-old options that financial advisors sell. These alternatives will help you build and protect your wealth.

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