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Tax Resources

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?
  • You
  • Your spouse
  • Student you claim as a dependent on your return
  • You
  • Your spouse
  • Student you claim as a dependent on your return
Who must pay the qualified expenses?
  • You or your spouse
  • Student
  • Third party^
  • You or your spouse
  • Student
  • Third party^
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