As we navigate through the complexities of personal finance, taxes, and retirement planning, having access to accurate and up-to-date information is crucial.
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To help you stay informed, we have compiled a pretty comprehensive list of important numbers to help with your These important numbers cover various areas such as federal income tax, retirement plans, education tax credit incentives, Social Security, and more. Whether you’re a DIY investor, a family managing finances, or a small business owner, this guide is designed to provide you with a quick and easy reference.
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Federal Income Tax Rates
Understanding the federal income tax rates is essential for calculating your tax liability. Here are the tax rates for 2023:
10%
12%
22%
24%
32%
35%
37%
Federal Income Tax Brackets
To determine which tax bracket you fall into, here are the federal income tax brackets for 2023 based on filing status:
Married Filing Jointly (MFJ):
$0 – $22,000
$22,001 – $89,450
$89,451 – $190,750
$190,751 – $364,200
$364,201 – $462,500
$462,501 – $693,750
Over $693,750
Single:
$0 – $11,000
$11,001 – $44,725
$44,726 – $95,375
$95,376 – $182,100
$182,101 – $231,250
$231,251 – $578,125
Over $578,125
Estates & Trusts:
10%
24%
35%
37%
$2,901 – $10,550
$0 – $2,900
$10,551 – $14,450
Over $14,450
Alternative Minimum Tax (AMT)
The Alternative Minimum Tax is a parallel tax system that ensures individuals with high deductions and other tax benefits pay a minimum amount of tax. Here are the key figures for 2023:
Exemption Amount:
MFJ: $126,500
Single: $81,300
28% Tax Rate Applies to Income Over:
MFJ: $220,700
Single: $220,700
Exempt Phaseout Threshold:
MFJ: $1,156,300
Single: $578,150
Exemption Elimination:
MFJ: $1,662,300 – $903,350
Single: N/A
Long-Term Capital Gains
Long-term tax rates apply to the sale of assets held for more than one year. Here are the rates for 2023 based on filing status and taxable income:
MFJ:
0% Rate: ≤ $89,250
15% Rate: $89,251 – $553,850
20% Rate: > $553,850
Single:
0% Rate: ≤ $44,625
15% Rate: $44,626 – $492,300
20% Rate: > $492,300
Estates/Trusts:
0% Rate: ≤ $3,000
15% Rate: > $3,000
Net Investment Income Tax
The Net Investment Income Tax is an additional tax imposed on certain investment income. Here are the thresholds for 2023:
MFJ: Paid on the lesser of net investment income or excess of Modified Adjusted Gross Income (MAGI) over $250,000.
Single: Paid on the lesser of net investment income or excess of MAGI over $200,000.
Standard Deduction
The standard deduction is a predetermined amount that reduces your taxable income. Here are the standard deduction amounts for 2023:
MFJ: $27,700
Single: $13,850
Social Security
Understanding Social Security benefits and related numbers is crucial for retirement planning. Here are some important figures for 2023:
Full Retirement Age (FRA):
1943-1954: 66 years
1955: 66 years and 2 months
1956: 66 years and 4 months
1957: 66 years and 6 months
1958: 66 years and 8 months
1959: 66 years and 10 months
1960 and later: 67 years
Social Security Wage Base: $160,200
Medicare:
No Limit on Earnings
Earnings Limit:
Below Full Retirement Age (FRA): $21,240
Reaching FRA: $56,520
Education Tax Credit Incentives
For individuals pursuing higher education, tax credits can help offset educational expenses. Here are the key figures for 2023:
American Opportunity Tax Credit:
Amount of Credit: 20% of the first $10,000
Single MAGI Phaseout: $80,000 – $90,000
MFJ MAGI Phaseout: $160,000 – $180,000
Lifetime Learning Credit:
Amount of Credit: 100% of the first $2,000, 25% of the next $2,000
Single MAGI Phaseout: $80,000 – $90,000
MFJ MAGI Phaseout: $160,000 – $180,000
Retirement Plans
Planning for retirement involves understanding contribution limits and catch-up provisions. Here are some key figures for 2023:
Elective Deferrals (401(k), 403(b), 457):
Contribution Limit: $19,500
Catch-Up (Age 50+): $6,500
Defined Contribution Plan:
Limit Per Participant: $58,000
Defined Benefit Plan:
Maximum Annual Benefit: $265,000
SIMPLE IRA:
Contribution Limit: $13,500
Catch-Up (Age 50+): $3,000
Health Savings Account (HSA)
HSAs offer tax advantages for eligible individuals with high-deductible health plans. Here are the contribution limits for 2023:
Individual Coverage: $3,850
Family Coverage: $7,750
Age 55+ Catch-Up: $1,000
Traditional IRA and Roth IRA Contributions
Contributing to IRAs can provide tax benefits and help with retirement savings. Here are the contribution limits for 2023:
Total Contribution Limit: $6,500
Catch-Up (Age 50+): $1,000
Traditional IRA Deductibility (If Covered by Work Plan):
Single MAGI Phaseout: $73,000 – $83,000
MFJ MAGI Phaseout (if only spouse is covered): $218,000 – $228,000
Estate and Gift Tax
For estate planning purposes, understanding estate and gift tax rules is important. Here are the key figures for 2023:
Lifetime Exemption: $12,920,000
Tax Rate: 40%
Annual Exclusion Gift Tax: $17,000
Roth IRA Eligibility
Roth IRAs offer tax-free growth and qualified withdrawals. Here are the MAGI phaseout ranges for 2023:
Single: $73,000 – $83,000
MFJ (if only spouse is covered): $218,000 – $228,000
These numbers serve as a valuable resource for managing your finances, taxes, and retirement planning in 2023. To have a convenient and easily accessible reference, we have created an updated “Important Numbers” chart that you can download by clicking the link below. This chart will help you navigate through various tax rates, brackets, retirement plans, education tax credits, and more. Stay informed and make your money count!
Remember, accurate and up-to-date information is crucial for making sound financial decisions. Consult with a qualified financial advisor or tax professional to ensure these numbers align with your specific circumstances.
Note: The information provided in this article is for informational purposes only and should not be considered as financial or tax advice. Consult with a qualified financial advisor or tax professional for personalized advice based on your individual situation.
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