Another piece of good news from the federal government this week.
The new income tax brackets and standard deductions have come out and they have increased to account for inflation. The higher standard deduction will help to lower your taxable income and therefore your total income taxes. The higher tax brackets may help as well if they keep you in the same bracket or even push you down into a lower bracket.
The inflation adjustments also impacted many other tax provisions such as the alternative minimum tax and the earned income tax credit. They also increased the contribution limits on 401(k) and IRA/Roths.
These new rates go into effect on January 1, 2023.
Please let us know if you have any questions or would like more information on 2023 income taxes
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