Here's a quick review of some of the tax changes you'll see starting with the 2023 tax year as a result of inflation adjustments and new tax laws.
Provisions
Business equipment Sec. 179 expensing deduction: $1,160,000
Total purchase limit for full Sec. 179 expensing deduction: $2,890,000
Mileage rate charitable activity: 14¢ per miler mile
Standard mileage rate medical/moving: 22¢ per mile
Mileage rate charitable activity: 14¢ per mile
Maximum wages subject to social security tax: $160,200
Social security earnings limit
Under full retirement age: $21,240
Full retirement age: No limit
Top estate tax rate: 40%
Estate tax exemption: $12,920,000
Annual gift tax exclusion (per donee): $17,000
Alternative minimum tax exemption
Single: $81,300
Married, joint: $126,500
Married, separate: $63,250
Maximum retirement plan contributions
RA for those under age 50: $6,500
IRA for those 50 and over: $7,500
SIMPLE plan for those under age 50: $15,500
SIMPLE plan for those 50 and over: $19,000
401(k) plan for those under age 50: $22,500
401(k) plan for those 50 and over: $30,000
HSA contribution limits
Self only: $3,850
Family: $7,750
Additional for 55 & older: $1,000
"Kiddie tax" threshold: $2,500
"Nanny tax" threshold: $2,600
Education savings account contribution (Coverdell): $2,000
American opportunity (Hope) credit limit: $2,500
Education loan interest deduction: $2,500
Personal exemption (suspended through 2025): Suspended
FICA & self-employment tax
Taxable wages for Social Security/Medicare: Up to $160,200
Social Security/Medicare tax rate
Employees: 7.65%
Employers: 7.65%
Self-employed: 15.3%
Standard deduction
Single: $13,850
Joint returns & surviving spouses: $27,700
Married filing separately: $13,850
Head of household: $20,800
Additional for elderly or blind (married): $1,500
Additional for elderly or blind (single): $1,850
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