For many, tax year 2023 may not be as painful when it comes to taxes…
✅ Standard deductions rose from $25,900 to $27,700 for married taxpayers and from
$12,950 to $13,850 for singles and couples filing separately
✅ All of the individual tax brackets will increase by 7%, meaning that many of us will find ourselves in a lower top tax bracket than in 2022
✅ The max contribution to your 401(k) increases from $20,500 to $22,500. This is a huge win if you’re already saving for retirement and can spare the extra $2k in pre-tax contributions!
The IRS is substantially raising the limits on what individuals can contribute to their 401(k) plans and IRAs. You can read more about them in Notice 2022-55, posted today on IRS.gov.
For tax year 2023, here’s what you need to know:
Make sure to talk with your tax advisor about how this will impact your overall situation and whether you need to make any changes before the start of the new year.
(Don’t have a tax advisor? Consider letting us support you and join our waitlist to be the first to know when we open up spots for next year)