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.
0 Comments
Leave a Reply. |