Tax season is upon us, and our team at Good Life Financial Advisors of Mt. Pleasant is here to help! For 2023, the income limits for all tax brackets were adjusted for inflation. Read on to find the key numbers you need to make this tax season successful. Of course, if you have any questions along the way, our team of financial professionals is here to help!
Income Tax (2023 tax rate tables)
Filing Single
If you are filing single for 2023, use the adjustments below to better understand what you owe or what is owed to you this tax year.
- 10% for incomes below $11,000 + $0 tax due
- 12% for incomes over $11,000 + $1,100 tax due
- 22% for incomes over $44,725 + $5,147 tax due
- 24% for incomes over $95,375 + $16,290 tax due
- 32% for incomes over $182,100 + $37,104 tax due
- 35% for incomes over $231,250 + $52,832 tax due
- 37% for incomes over $578,125 + $174,238.25 tax due
Married Filing Jointly
If you are married and filing jointly for 2023, use the adjustments below to better understand what you owe or what is owed to you this tax year.
- 10% for incomes below $22,000 + $0 tax due
- 12% for incomes over $22,000 + $2,200 tax due
- 22% for incomes over $89,450 + $10,294 tax due
- 24% for incomes over $1,9750 + $32,580 tax due
- 32% for incomes over $364,200 + $74,208 tax due
- 35% for incomes over $462,500 + $105,664 tax due
- 37% for incomes over $693,750 + $186,601.50 tax due
Married Filing Separately
If you are married and filing separately for 2023, use the adjustments below to better understand what you owe or what is owed to you this tax year.
- 10% for incomes below $11,000 + $0 tax due
- 12% for incomes over $11,000 + $1,100 tax due
- 22% for incomes over $44,725 + $5,147 tax due
- 24% for incomes over $95,375 + $16,290 tax due
- 32% for incomes over $182,100 + $37,104 tax due
- 35% for incomes over $231,250 + $52,832 tax due
- 37% for incomes over $346,875 + $93,300 tax due
Head of Household
If you are filing as head of household for 2023, use the adjustments below to better understand what you owe or what is owed to you this tax year.
- 10% for incomes below $15,700 + $0 tax due
- 12% for incomes over $15,700 + $1,570 tax due
- 22% for incomes over $59,850 + $6,868 tax due
- 24% for incomes over $95,350 + $14,678 tax due
- 32% for incomes over $182,100 + $35,498 tax due
- 35% for incomes over $231,250 + $51,226 tax due
- 37% for incomes over $578,100 + $172,623.50 tax due
Standard Deductions
- Single: $13,850
- Married filing jointly: $27,700
- Married filing separately: $13,850
- Head of household: $20,800
- Dependent*: $1,250
*Dependent standard deduction can’t exceed the greater of $1,250 or $400 plus earned income.
Additional deduction for blind or aged (age 65+)
- Single or head of household: $1,850
- Married filing jointly or separately: $1,500
Alternative Minimum Tax (AMT)
- Single or head of household ($81,300 maximum exemption amount | $578,150 exemption phaseout threshold)
- Married filing jointly ($126,500 maximum exemption amount | $1,156,300 exemption phaseout threshold)
- Married filing separately ($63,250 maximum exemption amount | $578,150 exemption phaseout threshold)
Please note that the 26% rate applies to AMT income up to $220,700, and the 28% rate applies to AMT income over $220,700 (or $110,350 if married filing separately)
Education Credits & Deductions: Magi Phaseout Ranges
- Lifetime Learning credit ($2,000 max):
Single or head of household: $80,000 to $90,000
Married filing jointly: $160,000 to $180,000 - American Opportunity credit ($2,500 max):
Single or head of household: $80,000 to $90,000
Married filing jointly: $160,000 to $180,000 - Education loan interest deduction ($2,500 max):
Single or head of household: $75,000 to $90,000
Married filing jointly: $155,000 to $185,000 - U.S. Savings bond interest exclusion for higher-education expenses:
Single or head of household: $91,850 to $106,850
Married filing jointly: $137,800 to $167,800
Estate Planning
- Annual gift tax exclusion $17,000
- Noncitizen spouse annual gift tax exclusion $175,000
- Top gift, estate, and GST tax rate 40%
- Gift tax and estate tax applicable exclusion amount $12,920,000 + DSUEA*
- Generation-skipping transfer (GST) tax exemption $12,920,000**
* Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable).
**The GST tax exemption is not portable.
Retirement Planning
Employee contribution limits to employer plans*
- 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs
(includes Roth contributions to these plans): $22,500 - Annual catch-up contribution (age 50+): $7,500
- SIMPLE 401(k) and SIMPLE IRA plans: $15,500
- Annual catch-up contribution (age 50+): $3,500
IRA Contribution Limits**
- Traditional and Roth IRAs (combined): $6,500
Annual catch-up contribution (age 50+): $1,000
* Lesser of these limits or 100% of the participant’s compensation.
** Lesser of these limits or 100% of earned income.
MAGI phaseout limits for deductible contributions to a traditional IRA
This information affects taxpayers covered by an employer-sponsored retirement plan.
- Single or head of household: $73,000 to $83,000
- Married filing jointly when the spouse who makes the contribution is covered by a workplace plan: $116,000 to $136,000
- Married filing jointly when a workplace plan does not cover the spouse who makes the contribution, but the other spouse is covered: $218,000 to $228,000
- Married filing separately: Up to $10,000
MAGI phaseout limits to contribute to a Roth IRA
- Single or head of household: $138,000 to $153,000
- Married filing jointly: $218,000 to $228,000
- Married filing separately: Up to $10,000
Health Care
- Flexible spending account (FSA) for health care:
Maximum salary reduction contribution $3,050 - Health savings account (HSA):
Annual contribution limit — individual coverage $3,850
Annual contribution limit — family coverage $7,750
Annual catch-up contribution (age 55+) $1,000 - High-deductible health plan (HDHP)
Minimum deductible — individual coverage $1,500
Minimum deductible — family coverage $3,000
Maximum out-of-pocket amount — individual $7,500
Maximum out-of-pocket amount — family $15,000
Social Security/Medicare
Maximum taxable earnings
- Social Security (OASDI only): $160,200
- Medicare (HI only): No limit
Standard Mileage Rates
- Business purposes: 65.5¢ per mile
- Medical purposes: 22¢ per mile
- Charitable purposes: 14¢ per mile
- Moving purposes: 22¢ per mile
Discover the Good Life
We hope you found these key tax reference numbers helpful! However, if you’re still overwhelmed by all the numbers, remember that our team at Good Life is here to help. Our team is proudly certified by the CERTIFIED FINANCIAL PLANNING® Professional Board. As licensed financial professionals with years of experience and demonstrated success in helping clients, we’d love to work with you to keep up with taxes and build a path to work toward your financial goals. To learn more, contact us today to schedule a complimentary consultation.
Thank you for visiting our blog, and we hope to help you soon!
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.