2023 tax law changes

The standard deduction for married couples filing jointly rises to $27,700 (up $1800) Single taxpayers rises to $13,850 (up $900) and Head of Household will be $20,800 (up $1400.)

Tax Rates after the standard deduction two tax brackets added and adjusted for inflation:

37% incomes over $578,125 (693,750 for married couples)

35% incomes over $231,250 ($462,500 for married couples)

24% incomes over $95,375 (190,750 for married couples)

22% incomes over $44,725 (89,450 for married couples)

12% incomes over $11,000 (22,000 for married couples)

10% incomes under $10,999 (21,999 for married couples)

Contribution limitations:

401K, 403B, most 457 plans and federal Government's Thrift Savings Plan is increased to $22,500, up from $20,500 for 2022.

IRA contributions are $6,500

Depreciation declines:

This is for property placed in service based on market value. You will not be able to write off 100% anymore with the section 179 deduction.

80% for property in 2023

60% for property in 2024

40% for property in 2025

20% for property in 2026

Solar Tax Credit- 30% of cost Then, you can depreciate the rest.

RMD- age increases to 73

CHILD TAX CREDIT UPDATE- The House has approved to add additional child tax credit for 2023 of $1600 per child, $1800 per child on 2024, and an additional $2000 per child in 2025. This is in addition to the $2000 already received.

Be sure to change your address for everyone who will send you tax documents. Tax documents WILL NOT forward.