Last week the IRS announced its annual inflation adjustments for various tax provisions in the tax year 2023. Below are some of the items we believe would be of interest to many.
For married couples the zero-rate amount is now $89,250. The maximum 15% rate amount is $553,850. For single files those rates are $44,625 and $492,300, respectively.
The standard deduction across all filing types is set to increase. The deduction for married couples filing jointly will increase by $1,800 for 2023. The deduction will be $27,700. Similarly, the deduction for single filers will be increased by $900, for an updated deduction of $13,850. For head of household filers, the increase is $1,400 resulting in a standard deduction of $20,800.
The amount individuals can contribute to their 401(k) plans for 2023 has been increased to $22,500 for 2023. Additionally, the catch-up contribution for individuals over the age of 50 has also been increased to $7,500. The annual contribution limit for those contributing to an IRA was increased to $6,500.
For the calendar year 2023, the first $17,000 of gifts to any person is not included in the total amount of taxable gifts made during the year. This is a per person exclusion. A married couple could give any one person $34,000 ($17,000 each).
For estates of decedents who die during 2023 the basic exclusion amount has increased by $860,000. The 2023 exclusion amount is $12,920,000.
At Curran we value service over sales and believe quality service yields happy clients. Below is our 4-step process (the first three steps at no cost to you).
A short introductory call for us to get to know one other. During this call we will discuss your financial goals, concerns and hopes for the future.
In this meeting we will go over your current financial situation, take a deeper look at your goals, discuss your risk tolerances, and collect the data necessary to build a formal proposal.
Based on our data gathering session, our Private Wealth Managers will present you with a custom proposal tailored to your needs. We encourage individuals to take the time to evaluate this proposal.
If you are comfortable with the proposal and choose to invest with Curran, our team will be there every step of the way assisting in opening the recommended accounts and facilitating all necessary parts of your onboarding process.