The IRS has announced inflation adjustments to the standard deduction and other tax provisions for the 2023 tax year.
The standard deduction for married couples filing jointly for tax year 2023 will rise to $27,700, up $1,800 from tax year 2022. The standard deduction is the amount taxpayers can subtract from their income, before they owe taxes on the rest. (You cannot take the standard deduction if you itemize your deductions.) For single taxpayers and married people filing separately, the standard deduction will rise to $13,850, up $900; for heads of households, it will rise to $20,800, up $1,400. People age 65 and over can claim an additional standard deduction of $1,500 for 2023, or $1,850 if they are unmarried and not a surviving spouse.
Image and article originally from www.barrons.com. Read the original article here.