IRS releases new income tax brackets for 2023

[alaskanseminole]

IRS releases new income tax brackets for 2023​

Wed, October 4, 2023 at 6:23 PM CDT·2 min read

The Internal Revenue Service released this week higher federal tax brackets and standard deductions for 2023 amid soaring inflation.
The income thresholds have increased for each bracket, which will apply for tax year 2023 and returns filed in 2024, CNBC reported.
IRS will pause taking claims for pandemic-era tax credit due to an influx of fraudulent claims

The tax brackets show how much a taxpayer will owe in federal income taxes on each “taxable income” portion, which is calculated by adding up all income sources and then subtracting any standard deductions, according to H&R Block.

These are the newly released federal tax brackets for tax year 2023​

Married

$22,000 or less	10% of the taxable income
$22,001 to $89,450	$2,200 plus 12% of the amount over $22,000
$89,451 to $190,750	$10,294 plus 22% of the amount over $89,450
$190,751 to $364,200	$32,580 plus 24% of the amount over $190,750
$364,201 to $462,500	$74,208 plus 32% of the amount over $364,200
$462,501 to $693,750	$105,664 plus 35% of the amount over $462,500
$693,751 or more	$186,601.50 plus 37% of the amount over $693,750

Single:

$11,000 or less	10% of the taxable income
$11,001 to $44,725	$1,100 plus 12% of the amount over $11,000
$44,726 to $95,375	$5,147 plus 22% of the amount over $44,725
$95,376 to $182,100	$16,290 plus 24% of the amount over $95,375
$182,101 to $231,250	$37,104 plus 32% of the amount over $182,100
$231,251 to $578,125	$52,832 plus 35% of the amount over $231,250
$578,126 or more	$174,238.25 plus 37% of the amount over $578,125

The complete breakdown can be found here.

The standard deduction will also increase in 2023, rising to $27,700 for married couples filing jointly, which is an increase from $25,900 in 2022.

Single filers can claim $13,850, an increase from $12,950 in 2022.

The tax agency also increased the figures for provisions like alternative minimum tax.

While the upcoming tax season has yet to start, Californians who have yet to file their 2022 taxes have until Oct. 16 to do so.
The tax extension was granted to residents impacted by severe weather during the winter season last year.

IRS releases new income tax brackets for 2023

The Internal Revenue Service released this week higher federal tax brackets and standard deductions for 2023 amid soaring inflation. The income thresholds have increased for each bracket, which will apply for tax year 2023 and returns filed in 2024, CNBC reported. The tax brackets show how much...

www.yahoo.com

 

[Funky Bunch]

Weren't these announced a year ago? Good ole Yahoo.

 

[SSG T]

Those first 4 brackets need to have WAY lower % and the last couple need WAY higher %.

An individual making <$20k per year shouldn't have to pay any Federal Income tax, let alone a couple making that. Federal shouldn't start until $25k/$50k.

 

[SeaPA]

Paying taxes is for suckers.

 

[ft254]

Paying taxes is for suckers.

You belong in prison.

 

[alaskanseminole]

You belong in prison.

Why? Because he's a CPA?

 

[HawkMachine]

An individual making <$20k per year shouldn't have to pay any Federal Income tax, let alone a couple making that.

You really think a person that makes less than 20k pays tax? Or even a couple making that pays tax?

LFMAO

What's funny is that people actually LIKED your comment.

As I posted in a different thread today, most people know NOTHING about taxes.

They only believe what they are told and want to believe.

 

[abby97]

Those first 4 brackets need to have WAY lower % and the last couple need WAY higher %.

An individual making <$20k per year shouldn't have to pay any Federal Income tax, let alone a couple making that. Federal shouldn't start until $25k/$50k.

I couldn't disagree more. Everyone needs to pay some federal/state and local income taxes. Obviously, the percentage can be very low, but everyone needs to know they are invested and contributing to society as a whole. No one in life should get a free ride unless they are physically or mentally unable to work.

 

[OrlandNole]

Those first 4 brackets need to have WAY lower % and the last couple need WAY higher %.

An individual making <$20k per year shouldn't have to pay any Federal Income tax, let alone a couple making that. Federal shouldn't start until $25k/$50k.

That's net of the standard deduction ($27,700), so a family making $47,700 and will pay 10% tax on $20K. There are likely other deductions and credits (children, etc.) that will push their tax liability close to zero.

 

[SeaPA]

You belong in prison.

Hmmm. With a long enough sentence I wouldn't have to worry about saving for retirement any more. But, the standard issue clothing is orange, and I'd hate for someone to mistake me for a goiter or a Clemson tigger.

 

[bunsen82]

Those first 4 brackets need to have WAY lower % and the last couple need WAY higher %.

An individual making <$20k per year shouldn't have to pay any Federal Income tax, let alone a couple making that. Federal shouldn't start until $25k/$50k.

This doesn't include the standard deduction. $13850 single and $27,700 married. With EIC and child tax credits I personally think the lower brackets should either be slightly higher or remove many of the credits. Most low income with dependents are getting large refunds.

Don't tell that to a republican though, they would rant and rave about higher taxes, while still wanting to say they want to balance the budget.