Even though the official numbers have not yet been published by the IRS, we’ve projected many of the key tax figures for 2023.
| Standard deduction | ||
|---|---|---|
| 2022 | Projected for 2023 | |
| Married filing jointly | $25,900 | $27,700 |
| Head of household | $19,400 | $20,800 |
| Single | $12,950 | $13,850 |
| Married filing separately | $12,950 | $13,850 |
| Standard deduction for dependent | Greater of $1,150 or $400 + earned income | Greater of $1,250 or $400 + earned income |
| Additional standard deduction for blind or aged (65 or older) | ||
| Single/Head of household | $1,750 | $1,850 |
| All others | $1,400 | $1,500 |
| Taxable income threshold for top 37% income tax bracket | ||
|---|---|---|
| 2022 | Projected for 2023 | |
| Married filing jointly | $647,850 | $693,750 |
| Head of household | $539,900 | $578,100 |
| Single | $539,900 | $578,125 |
| Married filing separately | $323,925 | $346,875 |
| Long-term capital gain 20% threshold (based on taxable income) | ||
|---|---|---|
| 2022 | Projected for 2023 | |
| Married filing jointly | $517,200 | $553,850 |
| Head of household | $488,500 | $523,050 |
| Single | $459,750 | $492,300 |
| Married filing separately | $258,600 | $276,925 |
| Alternative minimum tax (AMT) | ||
|---|---|---|
| 2022 | Projected for 2023 | |
| Maximum AMT exemption amount | ||
| Married filing jointly | $118,100 | $126,500 |
| Single/Head of household | $75,900 | $81,300 |
| Married filing separately | $59,050 | $63,250 |
| Exemption phaseout threshold | ||
| Married filing jointly | $1,079,800 | $1,156,300 |
| Single/Head of household | $539,900 | $578,150 |
| Married filing separately | $539,900 | $578,150 |
| 26% on AMTI* up to amount, 28% on AMTI above amount | ||
| Married filing separately | $103,050 | $110,350 |
| All others | $206,100 | $220,700 |
*Alternative minimum taxable income
| Kiddie tax: Child’s unearned income | ||
|---|---|---|
| 2022 | Projected for 2023 | |
| Above this amount taxed using parents’ tax rates | $2,300 | $2,500 |
| IRAs | ||
|---|---|---|
| 2022 | Projected for 2023 | |
| Contribution limits | ||
| Traditional and Roth IRAs (combined) | $6,000 ($7,000 if age 50 or older) | $6,500 ($7,500 if age 50 or older) |
| Roth IRA income phaseout range (contributions) | ||
| Single/Head of household | $129,000 to $144,000 | $138,000 to $153,000 |
| Married filing jointly | $204,000 to $214,000 | $218,000 to $228,000 |
| Married filing separately | $0 to $10,000 | $0 to $10,000 |
| Traditional IRA income phaseout range (deductibility) | ||
| 1. Covered by an employer-sponsored plan and filing as: | ||
| Single/Head of household | $68,000 to $78,000 | $73,000 to $83,000 |
| Married filing jointly | $109,000 to $129,000 | $116,000 to $136,000 |
| 2. Not covered by plan but filing joint return with covered spouse | $204,000 to $214,000 | $218,000 to $228,000 |
| 3. Married filing separately and either spouse is covered by plan | $0 to $10,000 | $0 to $10,000 |
| Estate planning | ||
|---|---|---|
| 2022 | Projected for 2023 | |
| Top gift, estate, and generation-skipping transfer (GST) tax rate | 40% | 40% |
| Annual gift tax exclusion | $16,000 | $17,000 |
| Noncitizen spouse annual gift tax exclusion | $164,000 | $175,000 |
| Gift tax and estate tax applicable exclusion amount | $12,060,0001 + DSUEA2 | $12,920,0001 + DSUEA2 |
| GST tax exemption | $12,060,000 | $12,920,000 |
1Basic exclusion amount
2Deceased spousal unused exclusion amount
We’ll continue to pass along timely, relevant information–providing fresh and interesting ways for you to engage and motivate your clients.
