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 |
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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 |
