New Tax Laws for 2023
We keep you informed of the most important changes:
Tax Brackets
The 2022 income tax brackets will continue to keep the 10%, 12%, 22%, 24%, 32%, 35% and 37% tax brackets in place from last year.
Standard Deduction
The standard deduction rises to $13,850 for single taxpayers and married taxpayers filing separately. The standard deduction is $27,700 for married couples filing jointly and $20,800 for head of household.
Personal Exemptions
The personal exemption was phased out starting tax year 2018.
Earned Income Tax Credit (EITC)
For 2023, the maximum EITC amount available is $3,995 for taxpayers with one child; $6,604 for two children; $7,430 for three or more children and $600 for no children.
Child Tax Credit
Up to $2,000 for each qualifying child under 17
Other dependent Credit: Up to $500
Child & Dependent Care Credit
Nonrefundable Credit $1,050 max ($2,100 for 2+ kids)
American Opportunity Tax Credit
Refundable Credit $2,500 max
Lifetime Learning Credit
Up to $2,000 per return (Nonrefundable Credit)
Student Loan Interest Deduction
Up to $2,500
Business Mileage
65.5 cents per mile