2023 Tax Rates Reference Guide
.
2023 Federal Tax Bracket
| Rate | For Unmarried Individuals, Taxable Income Over | For Married Individuals Filing Joint Returns, Taxable Income Over | For Heads of Households, Taxable Income Over |
| 10% | Up to $11,000 | Up to $22,000 | Up to $15,700 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,571 to $364,200 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $578,100 |
| 37% | $578,126 or more | $693,751 or more | $578,101 or more |
.
Trust and Estates
| Rate | Trust and Estates, Taxable Income Over |
| 10% | Up to $2,900 |
| 24% | $2,901 to $10,550 |
| 35% | $10,551 to $14,450 |
| 37% | Over $14,450 |
.
Long Term Capital Gain and Qualified Dividend Tax Rates
| Tax Rate | Long Term Capital Gain, Single/MFS | Long Term Capital Gain, Married Filing Jointly | Long Term Capital Gain, Head of Household |
| 0% | $0.00 to $44,625 | $0.00 to $89,250 | $0.00 to $59,750 |
| 15% | $44,626 to $492,300 | $89,251 to $553,850 | $59,751 to $523,050 |
| 20% | $492,301 and above | $553,851 and above | $523,051 and above |
.
Miscellaneous
| Standard Deductions | 2022 | 2023 |
| Single and Married Filing Separately | $12,950 | $13,850 |
| Married Filing Jointly & Surviving Spouse | $25,900 | $27,700 |
| Head of House Hold | $19,400 | $20,800 |
| Aged 65+ or Blind (MFJ/Single) | $1,400 and $1,750 | $1,500 and $1,850 |
| Child Unearned Tax (Kiddie Tax) | 2022 | 2023 |
| Unearned Income | $2,300 | $2,500 |
| Social Security and Medicare Tax | 2022 | 2023 |
| Social Security Rate (EE+ER) | 12.40% | 12.40% |
| Social Security Income Limit | $147,000 | $160,200 |
| Medicare Rate (EE+ER) | 2.90% | 2.90% |
| Additional Medicare Tax ($125,000+ to $250,000+) S/MFS/MFJ/HOH | 0.90% | 0.90% |
| Medicare Income Limit | No Limit | No Limit |
| Retirement Accounts Contribution | Regular Limit | Catch Up (50+) Limit |
| 401(k), 403(b), and 457 plans | $22,500 | $30,000 |
| SIMPLE IRA | $15,500 | $19,000 |
| Gift and GST Tax | 2022 | 2023 |
| Gift Tax Rate | 40% | 40% |
| Annual Exclusion | $16,000 | $17,000 |
| Lifetime Exemption | $12.06 million | $12,920 million |
| Annual Exclusion for non citizen spouse | $164,000 | $175,000 |
| Personal Exemptions | 2022 | 2023 |
| Personal Exemptions | Suspended | Suspended |
| STANDARD Mileage Deduction | 2022 | 2023 |
| Business Use | $0.585 – $62.5 | $0.655 |
| Charitable Use | $0.14 | $0.14 |
| Medical/Moving | $0.18 – $0.22 | $0.22 |
Child/other dependents Tax Credit
For 2022, child tax credit is $2,000 per child under age 17 as of the end of the year. Phase out of the credit begins at Modified Adjusted Gross Income (MAGI) of $400,000 for MFJ and $200,000 for all other filers. Up to $1,500 of the child tax credit is subject to refund (refundable) in 2022.
The American Rescue Plan Act of 2021 temporarily expands the child tax credit for Tax year 2021. First, it allows 17-year-old children to qualify for the credit. Second, it increases the credit to $3,000 per child ($3,600 per child under age 6) for many families. Third, it makes the credit fully refundable and removes the $2,500 earnings floor. Fourth, it requires half of the credit to be paid in advance by having the IRS send monthly payments to families from July 2021 to December 2021. There is an additional $500 nonrefundable credit for qualifying dependents other than children.
.
Taxable Social Security Benefits
Social security income is not taxable unless Adjusted Gross Income (AGI) + tax-exempt interest + half of Social Security received exceeds base amounts.
The base amounts (or limits) for 2021 is $25,000 if you are a single filer, head of household or qualifying widow or widower with a dependent child. The limit for joint filers is $34,000. If you are married filing separately, you will likely have to pay taxes on your Social Security income.
.
Section 179 Deductions
Section 179 dollar limitation is $1,080,000, (up to $2,700,000 qualifying property) for 2021. There is a $27,000 limitation on SUV’s for 2022. The dollar limitations phase out for the property amount exceeds $2,700,000.
.
Special Bonus Depreciation
For 2021, the allowance is 100% for qualified new and used property placed in service between September 28, 2017, and December 31, 2022. Bonus depreciation phases down 20% per year starting in 2023.