2023 Tax Information
Filing Requirements
Filing Status | Age | Income |
Single | under 65 | $12,950 |
65 or older | $14,700 | |
Head of Household | under 65 | $19,400 |
65 or older | $21,150 | |
Married, filing jointly | under 65 (both spouses) | $25,900 |
65 or older (one spouse) | $27,300 | |
65 or older (both spouses) | $28,700 | |
Married, filing separately | any age | $1 |
Qualifying widow(er) with dependent child |
under 65 | $25,900 |
65 or older | $27,300 |
Standard Deductions
Filing Status | Amount |
Single | $12,950 |
Married filing joint returns/Qualifying Widow(er) | $25,900 |
Head of household | $19,400 |
Married, filing separate return | $12,950 |
Limit on Itemized Deductions
Medical and Dental Deduction (AGI Threshold) | 7.5% |
Miscellaneous Itemized (AGI Deduction Floor) | 2% (Disallowed for tax years 2018-2025) |
There are miscellaneous tax deductions that are not subject to the 2% limit. |
Capital Gains Rate (Assets held more than 12 mos.)
Filing Status | 0% RATE | 15% RATE | 20% RATE |
Single | Up to $41,675 | $41,676 – $459,750 | No Breakpoint |
Married filing jointly | Up to $83,350 | $83,351 – $517,200 | No Breakpoint |
Married filing separately | Up to $41,675 | $41,676 – $258,600 | No Breakpoint |
Head of household | Up to $55,800 | $55,801 – $488,500 | No Breakpoint |
Transportation & Travel
Business Mileage Rate | $0.65 1/2 cents per mile |
Charitable Mileage Rate | $0.14 cents per mile |
Medical and Moving* Mileage Rate | $0.22 cents per mile |
*Federal law only allows a moving expense deduction for active duty military. |
Retirement Pension Plans
SECURE Act removed the age restrictions for taxpayers to contribute to a traditional IRA. | |
Maximum Annual Benefit for Defined Benefit Plan | $330,000 |
Maximum Annual Contribution Defined Contribution Plan | $66,000 |
IRA Deduction Limit (In general) | $6,500 |
IRA Deduction Age 50 Catch Up | $1,500 |
Simple IRA Base Contribution | $15,500 |
Simple IRA Age 50 Catch Up | $3,500 |
401(k) Maximum Exclusion (In general) | $22,500 |
401(k) Age 50 Catch Up | $7,500 |
Gift Taxes
Annual Gift Tax Exclusion | $16,000 |
Payroll Taxes
Social Security (Self-employed) | 12.4% |
Social Security Wages Tax Up To | $147,700 |
Medicare Rate(Employee/Employer) | 1.45% |
Medicare Rate (Self-employed) | 2.9% |
Social Security Rate (Employee/Employer) | 6.2% |
FUTA Wage Base Taxable Earnings | $7,000 |
FUTA Employer rate | 6.0% |
Tax Year 2023 Education Benefits Comparison
Criteria | AOTC | LLC |
Maximum benefit | Up to $2,500 credit per eligible student | Up to $2,000 credit per return |
Refundable or nonrefundable | 40% of credit (refundable) | Not refundable |
Limit on MAGI* for married filing jointly | $180,000 | $138,000 |
Limit on MAGI* for single, head of household, or qualifying widow(er) |
$90,000 | $69,000 |
If married can you file a separate return? | No | |
Dependent status | Cannot claim benefit if someone else can claim you as a dependent on their return | |
Can you or your spouse be a nonresident alien? | No, unless nonresident alien is treated as resident alien for tax purposes (see Publication 519 for information on nonresident alien status) | |
Number of years of post-secondary education available | Only if student hasn’t completed 4 years of post-secondary education before 2020 | All years of post-secondary education and for courses to acquire or improve job skills |
Number of tax years benefit available | 4 tax years per eligible student (includes any years former Hope credit claimed) | Unlimited |
Type of program required | Student must be pursuing a degree or other recognized education credential | Student does not need to be pursuing a degree or other recognized education credential |
Number of courses | Student must be enrolled at least half time for at least one academic period beginning in 2020 | Available for one or more courses |
Felony drug conviction | Students must have no felony drug convictions as of the end of 2020 | Does not apply |
Qualified expenses | Tuition, required enrollment fees and course materials needed for course of study | Tuition and fees required for enrollment or attendance |
For whom can you claim the benefit? |
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Who must pay the qualified expenses? |
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Payments for academic periods | Made in 2020 for academic periods beginning in 2020 or the first 3 months of 2021 |
* Third Party-Qualified education expenses paid by a third party for you or a student you claimed as a dependent on your return are considered paid by you for the AOTC and LLC. Payments by third parties include amounts paid by relatives or friends.
* MAGI, modified adjusted gross income: For most people, MAGI is the amount of AGI, adjusted gross income, shown on your tax return.
Key Penalty Rates
Failure to file – when you don’t file your tax return by the return due date, April 15, or extended due date if an extension to file is requested and approved. | 5% per month (max 25%) of unpaid tax amount due |
Failure to pay – when you don’t pay the taxes reported on your return in full by the due date, April 15. An extension to file doesn’t extend the time to pay | 0.5% of the unpaid tax not paid by due date for each month or part of a month the tax remains unpaid; 0.25% per month during approved installment agreement (if return was filed on time, and taxpayer is an individual);
1% if tax is not paid within 10 days of a notice of intent to levy (max 25%) of unpaid tax due charge on the remaining unpaid tax each month or part of a month following the due date, until the tax is fully paid or until 25% is reached |
Failure to pay proper estimated tax – when you don’t pay enough taxes due for the year with your quarterly estimated tax payments, or through withholding, when required | The penalty is calculated separately for each required installment. The number of days late is first determined and then multiplied by the effective interest rate for the installment period. |
Primary Home Sale Gain Exclusion
Joint Filers | $500,000 |
Single Filers | $250,000 |
Federal Tax Rates
10% bracket ends at- | 12% bracket ends at- | 22% bracket ends at- | 24% bracket ends at- | 32% bracket ends at- | 35% bracket ends at- | 37% bracket ends at- | |
Married filing separately | $10,275 | $41,775 | $89,075 | $170,050 | $215,950 | $323,925 | $323,925+ |
Single | $10,275 | $41,775 | $89,075 | $170,050 | $215,950 | $539,900 | $539,901+ |
Head of Household | $14,650 | $55,900 | $89,050 | $170,050 | $219.950 | $539,900 | $539,901+ |
Married filing jointly or Qualifying widow(er) | $20,550 | $83,550 | $178,150 | $340,00 | $431,900 | $647,850 | $647,851+ |
Earned Income Credit (EIC) – Maximum amounts available
With 1 qualifying child | $3,733 |
With 2 qualifying children | $5,920 |
With 3 or more qualifying children | $6,164 |
No qualifying child | $560 |
Maximum Earnings Before EIC Eliminated for Single, HOH, Qualifying Widow(er)
With no children | $16,480 |
With one child | $43,492 |
With two children | $49,399 |
With three or more children | $53,057 |
Maximum Earnings Before EIC Eliminated for Married Filing Joint
With no children | $22,610 |
With one child | $49,622 |
With two children | $55,529 |
With three children | $59,187 |