Don't let tricky taxes frighten you this Halloween. Instead of scary tricks, we can enjoy a spooktacular treat for a change regarding inflation! We are getting the most monstrous tax cut in six years!
On Oct. 18, 2022, the IRS announced the annual inflation adjustments for the 2023 tax year. As a result, many provisions will increase approximately seven percent across the board to account for the sky-high inflation Americans have seen throughout 2022. This larger-than-usual adjustment could mean many taxpayers remain in a lower federal tax bracket.
The federal tax brackets will not change in 2022. However, the IRS is making significant adjustments to multiple income thresholds for 2023. This means many taxpayers will stay in a lower bracket, and those who received a cost-of-living raise may avoid having a portion of their income pushed into a higher bracket. For example, a married couple filing jointly in 2023 can make a maximum of $89,450 to remain in the 12 percent bracket, compared with $83,550 in 2022.
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