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You can keep more money from the IRS next year, thanks to inflation


RV_
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"Automatic annual adjustments mean higher thresholds for income tax brackets and a heftier standard deduction

The Internal Revenue Service will allow Americans to shield more of their income from taxes in 2023 because of higher inflation, the agency announced Tuesday, raising income thresholds for all tax brackets and increasing the standard deduction.

The top tax rate of 37 percent will apply to individuals with income exceeding $578,125 and married couples filing jointly with income more than $693,750. Both of those amounts are up 7 percent from 2022 to track with increases in the consumer price index.

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The standard deduction — the baseline amount of income that filers can collect tax free — will increase to $13,850 for individuals and $27,700 for married couples. It is the largest adjustment to deductions since 1985, when the IRS began annual automatic inflationary adjustments."
Edited by RV_
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Thank you Derek! That is welcome information. Something else would be welcome too. I wish President Biden would declare another withdrawal holiday for IRA MRD requirements.

Since Jan. 1 2022 my IRA has decreased in value(over 20%) several times more than the MRD calculated on the same day.

Edited by Ray,IN
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