The IRS has released higher federal tax brackets and standard deductions for 2023 to adjust for inflation. Here's what filers need to know.
The standard deduction is increasing to $27,700 for married couples filing together and $13,850 for single taxpayers.
There are also changes to the alternative minimum tax, estate tax exemption, earned income tax credit and flexible spending account limits, among others.higher federal income tax brackets and standard deductions for 2023. The agency has boosted the income thresholds for each bracket, applying to tax year 2023 for returns filed in 2024.
These brackets show how much you'll owe for federal income taxes on each portion of your "taxable income," calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.The standard deduction will also increase in 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850, an increase from $12,950.
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