The IRS Has Announced Various Tax Benefit Increases for 2023
The IRS recently announced many inflation adjustments for the 2023 tax year. IRS Revenue Procedure 2022-38 provides details about these amounts. Because inflation is high, many of the amounts for 2023 will change more than they have in recent years. Here are some of the tax amounts for 2023, as compared with 2022.
In addition, the Social Security Administration announced that the Social Security wage base (the amount of earnings subject to taxation) will increase to $160,200 in 2023 (up from $147,000 in 2022). This threshold means that if you earn more than $160,200 in 2023, you won’t pay Social Security tax on the amount above that.
* The personal exemption was eliminated by the Tax Cuts and Jobs Act from 2018 to 2025.
This article appeared in Walz Group’s October 26, 2022 issue of The Bottom Line e-newsletter, produced by Checkpoint Marketing.
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