Posted on 10/19/2022 6:55:27 AM PDT by entropy12
The IRS has announced inflation adjustments to the standard deduction and other tax provisions for the 2023 tax year.
The standard deduction for married couples filing jointly for tax year 2023 will rise to $27,700, up $1,800 from tax year 2022. The standard deduction is the amount taxpayers can subtract from their income, before they owe taxes on the rest. (You cannot take the standard deduction if you itemize your deductions.) For single taxpayers and married people filing separately, the standard deduction will rise to $13,850, up $900; for heads of households, it will rise to $20,800, up $1,400. People age 65 and over can claim an additional standard deduction of $1,500 for 2023, or $1,850 if they are unmarried and not a surviving spouse.
(Excerpt) Read more at barrons.com ...
How about reducing the brackets, morons?
Good, now just tell my boss to adjust my income accordingly....................đ¤Śââď¸đ¤ˇââď¸đ
Make sure the door to your boss’s office is closed when you ask her/him that. There might be raised voices happening in there.
No, just maniacal laughter..................
I loved the tax reform passed under President Trump. Get rid of more deductions and cut the rates even more. I could never take any of the deductions anyway.
I would prefer no deductions, and simply reduce tax rates in each brackets.
The article says an additional $1850 if you are over 65, unmarried and not a surviving spouse. So $15K+.
Remember, if 1/2 your Soc Sec + other income stays under $25K (which you can often orchestrate by doing taxfree Roth withdrawls while shrinking Traditional IRAs via Roth conversion (to get your Traditional IRA numbers down before RzmDs start age 72), you can often dodge or minimize tax altogether.
Know the rules. Don’t wait for April 15 to discover what you should have done.
Every proposal I have seen for Soc Sec reform elevates that $25K number.
And put all those tax accountants and lawyers out of work? Yeah, like that will ever happen.
And especially the lobbyists, you know, the ones who wine and dine politicians who make these laws.
“The standard deduction for married couples filing jointly for tax year 2023 will rise to $27,700, up $1,800 from tax year 2022.”
Tax year 2022: $25,900
Tax year 2023: $27,700
Percent change: 6.95% — way below the real cost of living.
The lowest rate remains 10%, which will impact individuals with incomes of $11,000 or less and married couples earning $22,000 or less. Below are charts with the new tax brackets.
There is no zero tax bracket anymore.
But the statement from CBS is incorrect. The first $27,000 of income is not taxed from the standard deduction.
SO
Married couples earning $22,000 WILL NOT be affected as stated by CBS.
Know the rules. Donât wait for April 15 to discover what you should have done.
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I get your point but “knowing the rules” is just not something that most people make an effort to do. You may fault them for that but our tax system is ridiculously byzantine, unnecessarily complex, and a terrible burden on the American people, or at least those who actually pay taxes. Even the people who work at the IRS often don’t understand it.
Any government that makes taxes incomprehensible to the average person doesn’t actually care about the people. It just wants to extract money from them.
Well, might be a good goal, to overhaul the tax code, so that everyone paid a flat percentage, rather than the complex calculations some taxpayers go through.
All deductions that are in the tax code, were put there because someone thought they were good ideas.
Key deductions which many middle class people benefit from, are the mortgage interest deduction, property tax deduction, and charitable contribution deductions.
We can debate whether the federal government should encourage home ownership or giving to charity, but, those are key justifications for those particular deductions are in the tax code.
Is this for the 2022 filing year or for 2023 filing year?
The tax code needs to be overhauled and the IRS shuttered. The IRS is un-American. âYou are guilty before you prove your innocenceâ basically sums it up. As for the tax code, it costs individuals and businesses billions each year to file. Thatâs just the cost of tax preparation services, it doesnât include the time and lost productivity. Productivity is more important than ever given inflation. The tax code stands in the way of productivity and creates inflation.
The tax code is a weapon. It is a proven weapon of the leftist establishment when they use the tax code to go after conservatives. The tax code is a weapon of big business. Big business use lobbyists to influence Congress to give big business an advantage over smaller competitors.
As long as there is money to grease politicians there will be abuse of the tax code. The solution is to scrap the entire thing. A single-rate consumption tax paid solely by individuals on the sale of new goods and services does the job. No more income tax. No more business taxes. No more inheritance tax. No more filing taxes. No more tax-based planning for retirement investments. You wonât have to deal with details, the double and sometime triple taxation associated with investing.
The rich pay more because they buy more. The poor pay less because they buy less. You get to keep your entire paycheck (less state and local taxes, but they should be consumption taxes instead of income taxes too). America will be the best place in the world to base and do business because there are no business taxes. That means near perpetual employment for Americans. That may not seem like a big deal today, but wait a couple of month when unemployment skyrockets.
A consumption tax makes America great. The rest of the world is moving in the opposite and wrong direction. America should do the opposite and take advantage of their failed policies. Give the globalists the bird. Rejoice in all the IRS employees thrown to the street and forced to work in the private sector. They just might have to build something for a living. In other words, be productive.
We can’t even pass a common sense immigration law and have a border wall, we’ll never overhaul our current taxing system.
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