![]() ![]() Take a single taxpayer who earns $110,000. A common misconception is that the highest rate is what you'll pay on all of your income, but that is incorrect. Tax brackets show the percentage you'll pay in taxes on each portion of your income. Below are charts with the new tax brackets. The lowest rate remains 10%, which impacts individuals with incomes of $11,000 or less and married couples earning $22,000 or less. The top marginal rate, or the highest tax rate based on income, remains 37% for individual single taxpayers with incomes above $578,125 or for married couples with income higher than $693,750. The IRS boosted tax brackets by about 7% for each type of tax filer for 2023, such as those filing separately or as married couples. Only about 14% of taxpayers itemized their taxes after the passage of the tax overhaul, or a 17 percentage-point drop compared with prior to the law, according to the Tax Foundation. Most taxpayers take the standard deduction, especially after the 2017 Tax Cuts and Jobs Act enacted a more generous deduction. "That means your tax payments, mortgage interest and charitable contributions are less likely to provide you a tax benefit next year." "The flip side of this, though, is that it's going to be harder to itemize your deductions in 2023," Steffen said.
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