Posted on 10/19/2022 3:46:32 PM PDT by tired&retired
The IRS released inflation-adjusted marginal rates and brackets for 2023 on Tuesday, and many workers will see higher take-home pay in the new year as less tax is withheld from their paychecks.
Additionally, the agency released the standard deduction for next year. It is increasing by $900 to $13,850 for single taxpayers, and by $1,800 for married couples, to $27,700. For heads of household, the 2023 standard deduction will be $20,800. That’s an increase of $1,400.
Here are the marginal rates for tax year 2023, depending on your tax status.
Single filers – 10%: income of $11,000 or less
– 12%: income between $11,001 and $44,725
– 22%: income between $44,726 and $95,375
– 24%: income between $95,376 and $182,100
– 32%: income between $182,101 and $231,250
– 35% income between $231,251 and $578,125
– 37%: income greater than $578,125
Married filing jointly – 10%: income of $22,000 or less
– 12%: income between $22,001 and $89,450
– 22%: income between $89,451 and $190,750
– 24%: income between $190,751 and $364,200
– 32%: income between $364,201 and $462,500
– 35% income between $462,501 and $693,750
– 37%: income greater than $693,750
Additionally, the maximum Earned Income Tax Credit for 2023 is $7,430 for those who have three or more qualifying children. The maximum contribution to a health care flexible spending account is also increasing, from $2,850 to $3,050.
Wealthy Americans will also be able to exclude significantly more assets from the estate tax in 2023. Individuals will be able to transfer up to $12.92 million tax-free to their descendants, up from just over $12 million in 2022. A married couple can pass on double that. And the annual exclusion for gifts increases to $17,000.
(Excerpt) Read more at newsbreak.com ...
Of course, this assumes we don’t have an increase in tax rates next year. A *vast* majority of Congressional members are not our friends.
What are the Medicare brackets?
Try this:
https://www.medicareresources.org/medicare-eligibility-and-enrollment/what-is-the-income-related-monthly-adjusted-amount-irmaa/
bttt
bttt
The Social Security Administration (SSA) has announced that the maximum earnings subject to Social Security tax (Social Security wage base) will increase from $147,000 to $160,200 in 2023 (an increase of $13,200). The maximum Social Security employer contribution will increase $818.40 in 2023. (SSA Press Release, 10/13/2022)
For 2023, the FICA tax rate for both employers and employees is 7.65% (6.2% for OASDI and 1.45% for Medicare).
For 2023, an employer must withhold:
6.2% Social Security tax on the first $160,200 of employee wages (maximum tax is $9,932.40; i.e., 6.20% × $160,200), plus;
1.45% Medicare tax on the first $200,000 of employee wages, plus;
2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all employee wages in excess of $200,000.
Social Security and Supplemental Security Income (SSI) benefits will increase by 8.7% in 2023. The average monthly Social Security benefit will increase from $1,681 to $1,827, and the maximum federal SSI monthly payment to an individual will increase from $841 to $914. The maximum federal SSI monthly payment to a couple will increase from $1,261 to $1,371 in 2023. The amount of earnings that is required in order to be credited with a quarter of Social Security coverage will increase from $1,510 to $1,640.
The retirement earnings test remains in effect for individuals below normal retirement age (age 65 to 67, depending on year of birth) who continue to work while collecting Social Security benefits. For affected individuals, $1 in benefits will be withheld for every $2 in earnings above $21,240 in 2023 (up from $19,560 in 2022). For working individuals collecting benefits who reach normal retirement age (NRA) in 2023, $1 in benefits will be withheld for every $3 in earnings above $56,520 (up from $51,960 in 2022), until the month that the individual reaches NRA. After that month, there is no limit on earnings.
I have no issue with taxation , but I do have an issue with money flowing into a federal body that that does not stay within limits of what it brings in and loosely funds items that clearly break existing law (ILLEGAL ALIENS.) Also with the trending of legislation being presented within omnibus form as opposed to separate bill’s for each division of the federal government as it used to be. I consider the constant laziness and waiting until the last minute with a threat (hahahahahaha) of shutting the government down to force a signing of the budget by the President an abomination .....When the federal government ignores existing law and falls onto endless litigation while illegal expenditure’s continue , well I see it as a citizen’s duty to stem the flow of taxes to a government that gets progressively illegal and tyrannical by skirting law that it made.
#taxationisslavery
It’s not a matter of degree, but of kind, still owned.
Taxation is theft.
Well said!
tired&retired wrote:
“
The Social Security Administration (SSA) has announced that the maximum earnings subject to Social Security tax (Social Security wage base) will increase from $147,000 to $160,200 in 2023 (an increase of $13,200). The maximum Social Security employer contribution will increase $818.40 in 2023. (SSA Press Release, 10/13/2022)
For 2023, the FICA tax rate for both employers and employees is 7.65% (6.2% for OASDI and 1.45% for Medicare).
For 2023, an employer must withhold:
6.2% Social Security tax on the first $160,200 of employee wages (maximum tax is $9,932.40; i.e., 6.20% × $160,200), plus;
1.45% Medicare tax on the first $200,000 of employee wages, plus;
2.35% Medicare tax (regular 1.45% Medicare tax + 0.9% additional Medicare tax) on all employee wages in excess of $200,000.
Social Security and Supplemental Security Income (SSI) benefits will increase by 8.7% in 2023. The average monthly Social Security benefit will increase from $1,681 to $1,827, and the maximum federal SSI monthly payment to an individual will increase from $841 to $914. The maximum federal SSI monthly payment to a couple will increase from $1,261 to $1,371 in 2023. The amount of earnings that is required in order to be credited with a quarter of Social Security coverage will increase from $1,510 to $1,640.
The retirement earnings test remains in effect for individuals below normal retirement age (age 65 to 67, depending on year of birth) who continue to work while collecting Social Security benefits. For affected individuals, $1 in benefits will be withheld for every $2 in earnings above $21,240 in 2023 (up from $19,560 in 2022). For working individuals collecting benefits who reach normal retirement age (NRA) in 2023, $1 in benefits will be withheld for every $3 in earnings above $56,520 (up from $51,960 in 2022), until the month that the individual reaches NRA. After that month, there is no limit on earnings.
“
Has that $25,000 figure in the IRS Social Security worksheet for “how much will your soc sec get taxed” changed?
If someone has a high soc sec income, even if they decrease the amount of pension income they get in-hand and increase the amount going to their IRA, that COLA increase would put them over the limit, and some amount of their soc sec earnings would be taxed.
Property taxes went up $1,850.
Milk has doubled.
Gas has doubled.
Crack has gotten way too expensive.
So this gets me how far ahead exactly?
And so that is how we pay for the increase to recipients this year.
I don’t think the $25K for single taxpayers is indexed for inflation. But I’m not sure.
Any input, RTM?
Tack on an extra 20% to make up for real inflation.
Thomas Jefferson would propose a tax rebellion.
I don’t think we could get it going today.
I love our Constitution, our Flag, our Country, but have come to detest the governments. All of them...City, State, Federal.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.