Federal Tax Law Changes for Tax Year 2023

Please see the following changes that may affect your tax situation.

  • Child tax credit (CTC):
    • Up to $2,000 per child under age 17.
    • $1,600 of that may be a Refundable Credit.

  • Child and Dependent Care Tax Credit:
    • $3,000 for one child and $6,000, for multiple dependents and it may be a Refundable Credit.

  • Form 1099-K:
    • $600 Threshold to receive Form 1099-K
    • While the IRS says you shouldn’t receive Form 1099-K for personal transfers, (such as with PayPal, Venmo or other money apps) experts say it’s possible. The error may require you to contact the issuer or make adjustments to your tax return.
    • The threshold increase has been delayed until 2024.
  • Earned Income Credit:
    • Taxpayers with no children will qualify if their income is above $0 and below $17,640 ($24,210 for MFS). The maximum credit available is $600.
    • Taxpayers with 1 Qualifying child will qualify if their income is above $0 and below $46,560 ($53,120 for MFS). The maximum credit available is $3,995.
    • Taxpayers with 2 Qualifying children will qualify if their income is above $0 and below $52,918 ($59,478 for MFS). The maximum credit available is $6,600.
    • Taxpayers with 3 or more Qualifying children will qualify if their income is above $0 and below $56,838 ($69,398 for MFS). The maximum credit available is $7,430.
Maximum Contribution to Traditional IRAs or Roth IRAs $6,500 ($7,500 if you’re age 50 or older) or your taxable compensation for the year (if less)
  • Premium Tax Credit (Marketplace Insurance only):
    • If you, or your spouse (if filing a joint return), received, or were approved to receive, unemployment compensation for any week beginning during 2021, the amount of your household income is considered to be no greater than 133% of the federal poverty line for your family size and you are considered to have met the household income requirements for eligibility for a premium tax credit. Keep any supporting documentation related to receiving or the approval to receive unemployment compensation with your tax return records.
    • If your household income is up to 400% of the Federal Poverty Level, you may be eligible for Premium Tax Credits (some exceptions).
    • The Federal Poverty Level for 2023 is:
      • $14,582 Single
      • 19,720 Family of 2
      • 24,860 Family of 3
      • 30,000 Family of 4
Click here for Federal Poverty Level for larger families.

  • Standard Deductions for 2023 are:
    • $13,850 Single/Married Filing Separately
    • $20,800 Head of Household
    • $27,700 Married Filing Jointly
  • Common Itemized Deductions include:
    • Charitable Contributions
    • Property Taxes
    • Mortgage Interest
    • Medical Expenses (limited by 7.5% of your AGI)
Itemized Deductions are taken when they exceed the standard deduction available.

  • 2023 Federal Income Tax Brackets:
Tip: If viewing on a phone, turn it sideways to get a full view of this table...
Rate Single Married
Filing
Jointly
Married
Filing
Separately
Head of
Household
10% $0 to $11,000 $0 to $22,000 $0 to $11,000 $0 to $15,700
12% $11,001 to $44,725 $22,001 to $89,450 $11,001 to $44,725 $15,701 to $59,850
22% $44,726 to $95,375 $89,451 to $190,750 $44,726 to $95,375 $59,851 to $95,350
24% $95,376 to $182,100 $190,751 to $364,200 $95,376 to $182,100 $95,351 to $182,100
32% $182,101 to $231,250 $364,201 to $462,500 $182,101 to $231,250 $182,101 to $231,250
35% $231,251 to $578,125 $462,501 to $693,750 $231,251 to $346,875 $231,251 to $578,100
37% $578,126 and over $693,751 and over $346,876 and over $578,101 and over

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