![]() NOTE: Although not affected by anything new, it should be noted the Tax Cuts and Jobs Act (TJCA) already has scheduled bonus depreciation under IRC Section 168 to be reduced to 80% in 2023, and it will continue to be reduced by 20% each year thereafter, until it is fully phased out by Jan. The $1,160,000 limitation is reduced-but not below zero-by the amount for which the cost of IRC Section 179 property placed in service during the 2023 taxable year exceeds $2,890,000. 12% for individual incomes over $11,000 or $22,000 for married couples filing jointlyĮlection to expense certain depreciable assetsįor taxable years beginning in 2023, under IRC Section 179, the aggregate cost of any IRC Section 179 property that a taxpayer elects to treat as an expense cannot exceed $1,160,000 and the amount allowed for a sport utility vehicle cannot exceed $28,900.22% for individual incomes over $44,725 or $89,450 for married couples filing jointly.24% for individual incomes over $95,375 or $190,750 for married couples filing jointly.32% for individual incomes over $182,100 or $364,200 for married couples filing jointly.35% for individual incomes over $231,250 or $462,500 for married couples filing jointly.The lowest tax rate will be 10% for single individuals with incomes of $11,000 or less-or $22,000 for married couples filing jointly. The top tax rate will remain at 37% for individual or single taxpayers with incomes greater than $578,125 or $693,750 for married couples filing jointly. ![]() The standard deduction for heads of households will increase to $20,800 for the 2023 tax year-up $1,400 from the 2022 tax year. The standard deduction for single taxpayers and married individuals filing separately rises to $13,850 in 2023-up $900. The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700-up $1,800 from the 2022. The annual exclusion for gifts increases to $17,000 for calendar year 2023, up from $16,000. Estates of decedentsįor estate planning purposes, there will be a major increase to the estates of decedents who pass during 2023 with a basic exclusion amount of $12,920,000-up from a total of $12,060,000 for estates of decedents who passed in 2022. ![]() This was specifically included in IRS Revenue Procedure 2022-24. The maximum Simplified Employee Pension (SEP) IRA contribution has increased to $66,000 but still has no provision for a catch-up amount.Īlthough previously released, it would be worth noting the popular Health Savings Account (HSA) has increased for 2023 to $7,750 for a family plan and $3,850 for single, with both allowing a catch up of $1,000. The Simple IRA has also increased to $15,500 with an added increase to the catch-up of $3,500 for those 50 young and older. The 401(k) has increased to $22,500 with an added increase to the catch-up of $7,500 for those 50 young and older. The Traditional Individual Retirement Account (IRA) and Roth IRA have both been increased to $6,500, with the catch-up for those 50 and older remaining at $1,000. This article will provide the breakdown, starting with those of most interest. These can be found in IRS Revenue Procedure 2022-38. The numbers are in! The Internal Revenue Service (IRS) recently released the 2023 key amounts for those items that are routinely adjusted for inflation.
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