{"id":1703053,"date":"2022-10-20T06:30:14","date_gmt":"2022-10-20T10:30:14","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1703053"},"modified":"2022-10-20T09:34:36","modified_gmt":"2022-10-20T13:34:36","slug":"irs-announces-tax-adjustments-that-will-likely-affect-your-paycheck-soon","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/irs-announces-tax-adjustments-that-will-likely-affect-your-paycheck-soon\/","title":{"rendered":"IRS Announces Tax Adjustments That Will Likely Affect Your Paycheck Soon"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Firs-announces-tax-adjustments-that-will-likely-affect-your-paycheck-soon%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1703053&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>As the cost of living has soared for Americans battling against chronic <a href=\"https:\/\/www.theepochtimes.com\/t-inflation\">inflation<\/a>, the Internal Revenue Service (<a href=\"https:\/\/www.theepochtimes.com\/t-irs\">IRS<\/a>) may be bringing some welcome relief.<\/p>\n<p>The\u00a0federal agency <a href=\"https:\/\/www.irs.gov\/newsroom\/irs-provides-tax-inflation-adjustments-for-tax-year-2023\">announced<\/a>\u00a0on Oct. 18 a string of new\u00a0annual inflation adjustments that will impact the 2023 tax year, potentially bringing a boost to your paycheck, particularly if your\u00a0salary hasn\u2019t kept up with the increasing cost of living.<\/p>\n<p>Tax rates are typically adjusted for inflation annually by the IRS, so this is nothing new; but with red-hot\u00a0inflation currently at a 40-year high in the United States, this year\u2019s changes are likely to feel more significant for millions of Americans.<\/p>\n<p>The adjustments will\u00a0impact\u00a0individual income tax brackets, deductions, and credits for next year, potentially bringing relief to taxpayers who may now fall into lower tax brackets.<\/p>\n<p>Here are the changes announced by the IRS, effective for the 2023 tax year:<\/p>\n<p>Standard Deduction<\/p>\n<p>The standard deduction is typically used by most people who\u00a0don\u2019t itemize their <a href=\"https:\/\/www.theepochtimes.com\/t-taxes\">taxes<\/a> and reduces the\u00a0amount of income you must pay taxes on.<\/p>\n<p>Under the new\u00a0annual inflation adjustments announced by the IRS, the\u00a0standard deduction\u00a0for married couples filing jointly in 2023 is $27,700, up $1,800, or 7 percent from the prior year.<\/p>\n<p>For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for the tax year 2023, up $1,400 from 2022, marking a 7.2 percent increase.<\/p>\n<p>Tax Brackets<\/p>\n<p>For the tax year 2023, the top marginal rate,\u00a0or the highest tax rate based on income,\u00a0remains 37 percent for individual single taxpayers with incomes greater than $578,125, or\u00a0$693,750 for married couples filing jointly.<\/p>\n<p>The lowest rate is 10 percent, and applies to single individuals with incomes of $11,000 or less and married couples earning $22,000 or less.<\/p>\n<p>The other rates are: 35 percent for incomes over $231,250 (or $462,500 for married couples filing jointly),\u00a032 percent for incomes over $182,100 (or $364,200 for married couples filing jointly), 24 percent for incomes over $95,375 (or $190,750 for married couples filing jointly), 22 percent for incomes over $44,725 (or $89,450 for married couples filing jointly), and 12 percent\u00a0for incomes over $11,000 ($22,000 for married couples filing jointly).<\/p>\n<p>Earned Income Tax Credit<\/p>\n<p>The maximum amount for households who claim the earned income tax credit will be $7,430 for the tax year 2023 for individuals who have at least three children. In the tax year 2022, or the current tax year, this was\u00a0$6,935, according to the IRS.<\/p>\n<p>Flexible Spending Arrangements<\/p>\n<p>A flexible spending account, also known as a <a href=\"https:\/\/www.healthcare.gov\/have-job-based-coverage\/flexible-spending-accounts\/\">flexible spending arrangement<\/a>, allows workers to contribute a portion of their regular earnings, up to a limit set by the IRS, into an account that can be used to pay for certain\u00a0health care costs. Given that the funds taken from the account are not\u00a0subject to income and payroll taxes, they offer specific tax advantages<\/p>\n<p>For the taxable years beginning in 2023, the dollar limitation for employee salary reductions for\u00a0flexible spending arrangement contributions increases to $3,050, up from the\u00a0current tax<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the cost of living has soared for Americans battling against chronic inflation, the Internal Revenue Service (IRS) may be bringing some welcome relief. The\u00a0federal agency announced\u00a0on Oct. 18 a string of new\u00a0annual inflation adjustments that will impact the 2023 tax year, potentially bringing a boost to your paycheck, particularly if your\u00a0salary hasn\u2019t kept up &hellip;<\/p>\n","protected":false},"author":1,"featured_media":1894601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"IRS Announces Tax Adjustments That Will Likely Affect Your Paycheck Soon","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1703053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"IRS Announces Tax Adjustments That Will Likely Affect Your Paycheck Soon","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1703053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1703053"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1703053\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1894601"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1703053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1703053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1703053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}