IRS Announces BIG CHANGES For Americans!

IRS to Increase Standard Deductions Due to Inflation

(AmericanProsperity.com) – The IRS made a monumental decision on October 18 to significantly increase the standard deductions for the 2023 tax year. The decision was part of an effort to reduce the sting of high retail and energy prices from inflation and help residents get back on their feet. In addition, the agency will adjust tax income brackets, increase earned income credit amounts, and offer greater energy-related tax breaks to help struggling Americans.

The IRS is increasing energy-related tax breaks, as well as standard deductions for single and married people and heads of households. https://t.co/7Cn4i5PVjX

— WBUR (@WBUR) October 19, 2022

The standard deduction for the 2023 tax year will increase by $900 for people filing individually and $1,800 for couples who file jointly, taking the figures up to $13,850 and $27,700, respectively. Heads of households will see a $1,400 increase, which will take their standard deductions up to $20,000.

Tax brackets will also change for all individuals making less than $578,125 and married couples earning less than $693,750, who will continue to pay 37%:

Individuals making $231,250 and couples earning at least $462,500 will pay 35%.
Individuals earning $182,100 and couples bringing in $364,200 will pay 32%.
Individuals with incomes of $95,375 and couples earning $190,750 will pay 24%.
Individuals who earn $44,725 and couples that make $89,450 will pay 22%.
Individuals making $11,001 and couples earning $22,000 will pay 12%.
Individuals making up to $11,000 and couples bringing in less than $22,000 will pay 10%.

Earned Income Credit will also increase for some taxpayers — going from $6,935 to $7,430 for filers with at least three qualifying children.

These and other changes, including tax energy breaks for people and businesses that reduce their carbon footprints by 25%, will go into effect next year, impacting the April 2024 tax filing period. But with prices spiraling out of control right now, will the help come soon enough?

~Here’s to Your Prosperity!