Who Qualifies For The New Monthly Child Tax Credit Payments Wider tax brackets are generally a good thing, since it helps prevent “bracket creep.” In other words, if a bracket gets wider, you’re less likely to end up in a higher tax bracket if your income stays flat or doesn’t increase at the rate of inflation from one year to the next. However, for 2023, the width of the same bracket is expected to increase by more than twice the rate of growth seen in 2022. So, for 2022, the 22% bracket for single filers is $1,450 wider than it was for 2021. For the 2022 tax year, that same bracket covers $47,299 of taxable income. And, since inflation is much higher now than it has been in the recent past, the extent to which the brackets will get “wider” is expected to be greater for 2023 than it has been for the past several years.įor example, the 22% bracket for a single person in 2021, which ran from $40,526 to $86,375 of taxable income, covered $45,849 of taxable income. SEE MORE The Inflation Reduction Act and Taxes: What You Should KnowĪgain, the 2023 rates won’t change, but the brackets will be adjusted for inflation. At this point, there’s no reason to believe that the timetable will be modified this year, so that’s when we expect the 2023 tax brackets to be released. The IRS typically provides the tax brackets for the upcoming year in late October or early November. THE ONLY TAX VIDEO YOU NEED – Tax brackets and deductions explained
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |