Are you worried about paying your federal income taxes? The IRS has recently announced the new tax brackets for the 2023 tax year. These new brackets can show you how much federal tax money you owe against your taxable income in the coming year. You can also know the revised standard deductions to be observed in 2023.
Maggi Tax gives you thorough guidance regarding the new tax brackets and standard deductions to help you plan your income tax payables. For a better idea, let’s review the revised tax figures for married families and single individuals below.
New Tax Brackets for Tax Year 2023
When Filing Jointly as a (Married) Couple
| Income Brackets (Taxable) | Owed Tax Amounts |
| $22,000 or less | 10% of the Total Taxable Income |
| $22,001 – $89,450 | $2,200 + 12% of (Income) Amounts Over $22,000 |
| $89,451 – $190,750 | $10, 294 + 22% of (Income) Amounts Over $89,450 |
| $190,751 – $364,200 | $32,580 + 24% of (Income) Amounts Over $190,750 |
| $364,201 – $462,500 | $74,208 + 32% of (Income) Amounts Over $364,200 |
| $462,501 – $693,750 | $105,664 + 35% of (Income) Amounts Over $462,500 |
| $693,751 or above | $186,601.50 + 37% of (Income) Amounts Over $693,750 |
When Filing as a Single Individual
| Income Brackets (Taxable) | Owed Tax Amounts |
| $11,000 or less | 10% of the Total Taxable Income |
| $11,001 – $44,725 | $1,100 + 12% of (Income) Amounts Over $11,000 |
| $44,726 – $95,375 | $5,147 + 22% of (Income) Amounts Over $95,375 |
| $95,376 – $182,100 | $16,290 + 24% of (Income) Amounts Over $182,100 |
| $182,101 – $231,250 | $37,104 + 32% of (Income) Amounts Over $182,100 |
| $231,251 – $578,125 | $52,832 + 35% of (Income) Amounts Over $231,250 |
| $578,126 or above | $174,238.25 + 37% of (Income) Amounts Over $578,125 |
Revised Standard Deductions for Tax Year 2023
The IRS has also revised the standard deduction figures for the tax year 2023. The deductions will increase from $25,900 to $27,700 for married couples (when filing jointly). When filing as single individuals, the deduction amounts will increase from $12,950 to $13,850.
The rise in federal income tax figures and standard deductions owes the most to the rising inflation. Moreover, the continuing economic situation may push the trend further in the following tax years. Indeed, the news of increased payable taxes has not been very well received by the general public.
Did the IRS Revise Other Taxes?
The IRS has also revised the figures for several other provisions. You may notice an increase in the alternative minimum tax. Additionally, the figures have also increased for earned income tax credits, reaching a maximum of $7,430 for those with low-to-moderate incomes. The story does not end here; employees can now move $3,050 into their health flexible spending accounts.
If the above information overwhelms you, let Maggi Tax take care of your taxation needs to steer you out of possible troubles. Contact us here or call (727) 493-7295 to schedule your appointment.
