Key Numbers Projected for 2023

ByCandice Lamb
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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.

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