Today the IRS released Rev. Proc. 2022-38, which contains key inflation-adjusted income tax figures for the 2023 tax year. As expected, inflation adjustments are larger than usual for the coming year. Notable adjustments include:
- The standard deduction for 2023 is increased to:
- $27,700 for married individuals filling jointly, up from $25,900;
- $20,800 for heads of household, up from $19,400;
- $13,850 for single filers and married taxpayers filing separately, up from $12,950;
- The refundable portion of the Child Tax Credit is increased to $1,600 for 2023, up from $1,500 in 2022;
- The annual exclusion for gifts is $17,000 for 2023, increased from $16,000 in 2022; and
- The Unified Credit Against Estate Tax for a decedent dying in 2023 is $12,920,000, an increase of $860,000 from 2022 when the limit was $12,060,000.
The 2023 inflation-adjusted figures for contributions to individual retirement accounts (IRAs) and employer-sponsored plans will be published by the IRS at a later date.
To access Rev. Proc. 2022-38, go to:
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