As another year ends, we at Brown & Associates CPA Inc are looking forward to another tax season and are ready to help you in any way we can.
As always, there are many other changes for 2022 but most only affect a small number of taxpayers.
But, here are a few changes that may interest you.
The 2023 Tax Rates and Brackets have not changed from the 2022 Tax Rates and Brackets except they were adjusted for inflation. Below are the 2023 Tax Rates and Brackets.
Single Filers and Married Couples Filing Jointly
| Tax Rate | Taxable Income (Single) | Taxable Income (Married Filing Jointly) |
| 10% | Up to $11,000 | Up to $22,000 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 |
| 37% | Over $578,125 | Over $693,750 |
Married Couples Filing Separately and Head-of-Household Filers
| Tax Rate | Taxable Income (Married Filing Separately) | Taxable Income (Head of Household) |
| 10% | Up to $11,000 | Up to $15,700 |
| 12% | $11,001 to $44,725 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $346,875 | $231,251 to $578,100 |
| 37% | Over $346,875 | Over $578,100 |
The standard deduction has also been adjusted for inflation.
The standard deduction for 2023 are:
Single or Married Filing Separate: $13,850
Head of Household: $20,800
Married Filing Joint: $27,700
The standard deduction is the amount the IRS automatically allows taxpayers to deduct from their income before tax is calculated. For most people, the standard deduction exceeds any itemized deductions they may have. When your taxes are filed, you will be able to take the larger of the two, the standard deduction or itemized deductions.
In 2020 and 2021 taxpayers were allowed to deduct a small amount of charitable contributions even if they did not itemize. That deduction is not available for 2022 tax returns.
For taxpayers who have a Required Minimum Distribution (RMD) each year, there is a way to make a charitable contribution without itemizing. Instead of taking your RMD you can have the amount of the RMD sent directly to a charitable organization. When you take this route, the RMD is not taxable. So even though you don’t actually deduct the charitable contribution on your tax return, you are still getting the benefit of the deduction because the RMD is not taxable but is still counted as your RMD for the year.
The child tax credit was $3,600 for children under the age of 6 and $3,000 for children 6 through 17 in 2021. The child credit did go down for 2022.
The maximum child credit for 2022 is $2,000 for each child under the age of 17. If you have any questions or want more information please contact Theresa at 219-696-4746 or Theresa@brownandassociatescpa.com
