TAX145 - GUIDE: Key Tax Numbers (2023)
Key Numbers for 2023
Tax Bracket
Taxable Income Between:
Single | |
| $0–$11,000 | 10% |
| $11,001–$44,725 | 12% |
| $44,726–$95,375 | 22% |
| $95,376–$182,100 | 24% |
| $182,101–$231,250 | 32% |
| $231,251–$578,125 | 35% |
| $578,126+ | 37% |
Married, Filing Separately | |
| $0–$11,000 | 10% |
| $11,001–$44,725 | 12% |
| $44,726–$95,375 | 22% |
| $95,376–$182,100 | 24% |
| $182,101–$231,250 | 32% |
| $231,251–$346,875 | 35% |
| $346,876+ | 37% |
Head of Household | |
| $0–$15,700 | 10% |
| $15,701–$59,850 | 12% |
| $59,851–$95,350 | 22% |
| $95,351–$182,100 | 24% |
| $182,101–$231,250 | 32% |
| $231,251–$578,100 | 35% |
| $578,101+ | 37% |
Married, Filing Jointly |
| $0–$22,000 | 10% |
| $22,001–$89,450 | 12% |
| $89,451–$190,750 | 22% |
| $190,751–$364,200 | 24% |
| $364,201–$462,500 | 32% |
| $462,501–$693,750 | 35% |
| $693,751+ | 37% |
Estates and Trusts |
| $0–$2,900 | 10% |
| $2,901–$10,550 | 24% |
| $10,551–$14,450 | 35% |
| $14,451+ | 37% |
Health Savings Account (HSA)
Contribution Limits | |
| Individual | $3,850 |
| Family | $7,750 |
| Age 55 and over catch-up | $1,000 |
Income Tax
Long-Term Capital Gains and Qualified Dividend Tax
Taxable Income Threshholds
Single |
| $44,626–$492,300 | 15% |
| $492,301+ | 20% |
Married, Filing Separately |
| $44,676–$276,900 | 15% |
| $276,901+ | 20% |
Head of Household |
| $59,751–$523,050 | 15% |
| $523,051+ | 20% |
Married, Filing Jointly |
| $89,251–$553,850 | 15% |
| $553,851+ | 20% |
Estates and Trusts |
| $3,001–$14,650 | 15% |
| $14,651+ | 20% |
Standard Deduction |
| Single | $13,850 |
| Married, Filing Separately | $13,850 |
| Head of Household | $20,800 |
| Married, Filing Jointly | $27,700 |
Dependent: greater of $1,250 or $400 plus earned income
Blind or over 65: additional deduction of $1,500 if married;
$1,850 if single or head of household
Kiddie Tax: $2,500; taxed at parents’ highest marginal rate
Medicare Tax
| Additional Medicare Payroll Tax (Applies to an individual’s wages/self-employment income exceeding threshold, listed in next section) | 0.90% |
| Unearned Income Medicare Tax (Applies to lesser of net investment income or MAGI exceeding threshold, listed in next section) | 3.80% |
Income Tax
LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDEND TAX
TAXABLE INCOME THRESHHOLDS
Medicare Tax Threshholds |
| Single | $200,000 |
| Married, Filing Separately | $125,000 |
| Married, Filing Jointly | $250,000 |
| Estates and Trusts | $13,450 |
Capital Loss Limitation |
| Single | $3,000 |
| Married, Filing Separately | $1,500 |
| Married, Filing Jointly | $3,000 |
Alternative Minimum Tax (AMT)
| Exemption | Phaseout |
| Single or Head of Household | $81,300 | $578,150 |
| Married, Filing Separately | $63,250 | $578,150 |
| Married, Filing Jointly | $126,500 | $1,156,300 |
Estate, Gift, and Generation Skipping Tax
| Annual Gift Exclusion | $17,000 |
| Highest Transfer Tax Rate | 40% |
| Estate Tax Exclusion | $12,920,0001 |
| Gift Tax Exclusion | $12,920,0001 |
| Generation-Skipping Transfer Tax Exemption | $12,920,0001 |
| Non-Citizen Gifting Limit | $175,000 |
Education
529 Plan Contributions |
| Annual Gift Exclusion Value | $17,000 per year |
| Accelerate Five Years of Gifting into One Year Per Individual/Couple | $85,000/$170,000 |
American Opportunity Education Tax Credit |
| Maximum Credit | $2,500 |
| Phaseout—Single | $80,000–$90,000 |
| Phaseout—Married, Filing Jointly | $160,000–$180,000 |
Lifetime Learning Credits |
| Maximum Credit | $2,000 |
| Phaseout—Single | $80,000–$90,000 |
| Phaseout—Married, Filing Jointly | $160,000–$180,000 |
Student Loan Interest |
| Deduction Limit | $2,500 |
| Phaseout for Interest Deduction |
| Single | $75,000–$90,000 |
| Married, Filing Jointly | $155,000–$185,000 |
Retirement
Traditional IRA and Roth IRA Contributions | |
| Under age 50 | $6,500 |
| Age 50 and over | $7,500 |
Phaseout | |
| Traditional IRA Deductibility (MAGI) Contribution for qualified plan participant (fully deductible if not a participant) | |
| Single or Head of Household | $73,000–$83,000 |
| Married, Filing Separately | $0–$10,000 |
| Married, Filing Jointly | $116,000–$136,000 |
| Spousal IRA | $218,000–$228,000 |
Roth Contribution Eligibility (MAGI) |
| Single | $138,000–$153,000 |
| Married, Filing Separately | $0–$10,000 |
| Married, Filing Jointly | $218,000–$228,000 |
SEP Contribution |
| Lesser of $66,000 or 25% of compensation. Minimum compensation to participate in SEP is $750. |
SIMPLE Elective Deferral |
| Under age 50 | $15,500 |
| Age 50 and over | $19,000 |
401(k), 402(g), 403(b), 457, and SARSEP |
| Under age 50 | $22,500 |
| Age 50 and over | $30,000 |
| Limit on Additions to Defined Contribution Plan | $66,000 |
| Annual Benefit Limit on Defined Benefit Plan | $265,000 |
| Highly Compensated Employee Earns | $150,000 |
| Annual Compensation Taken into Account for Qualified Plans | $330,000 |
1Plus DSUEA (Deceased Spousal Unused Exclusion Amount)
2GST exemption is not portable.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.
Updated January 2023
Weller Group is located at 6206 Slocum Road, Ontario, NY 14519 and can be reached at 315-524-8000. Securities and Advisory Services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network.