Individual Income Tax Planning
Adoption credit
| Adoption credit | 2022 | 2023 |
| Maximum credit | $14,890 | $15,950 |
| Phaseout threshold amount | $223,410 | $239,230 |
| Completed phaseout amount after |
$263,410 | $279,230 |
Alternative Minimum Tax (AMT)
| Maximum AMT exemption amount | 2022 | 2023 |
| Married filing jointly or surviving spouse | $118,100 | $126,500 |
| Single or head of household | $75,900 | $81,300 |
| Married filing separately | $59,050 | $63,250 |
| AMT income exemption phaseout threshold | 2022 | 2023 |
| Married filing jointly or surviving spouse | $1,079,800 | $1,156,300 |
| Single or head of household | $539,900 | $578,150 |
| Married filing separately | $539,900 | $578,150 |
| AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount) | 2022 | 2023 |
| All taxpayers except married filing separately | $206,100 | $220,700 |
| Married filing separately | $103,050 | $110,350 |
Charitable deductions
| Use of auto | 2022 | 2023 |
| Deductible standard mileage rate | $0.14 | $0.14 |
| Charitable fundraising “insubstantial benefit” limitation | 2022 | 2023 |
| Low-cost article (re: unrelated business income) | $11.70 | $12.50 |
| Gifts to donor in return for contribution | 2022 | 2023 |
| Token gift maximum cost1 | $11.30 | $11.70 |
| Minimum contribution amount1 | $56.50 | $62.50 |
| 2% threshold amount2 | $117 | $125 |
Child tax credit
| Amount of credit | 2022 | 2023 |
| Maximum credit per qualifying child | $2,000 | $2,000 |
| Nonrefundable credit for dependents who are not qualifying children | $500 | $500 |
| Phaseout — credit reduced by $50 for each $1,000 or fraction thereof of MAGI over (but not to be reduced below $2,000): |
2022 | 2023 |
| Married filing jointly or surviving spouse | N/A | N/A |
| Head of household | N/A | N/A |
| Single or married filing separately | N/A | N/A |
| Phaseout — any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over: |
2022 | 2023 |
| Married filing jointly | $400,000 | $400,000 |
| All other filing status | $200,000 | $200,000 |
| Refundability — up to specified percentage of earned income in excess of specified amount | 2022 | 2023 |
| Percentage | 15% | 15% |
| Amount | $2,500 | $2,500 |
| Maximum refundable amount of credit | $1,500 | $1,600 |
Classroom expenses of elementary and secondary school teachers
| Classroom expense deduction | 2022 | 2023 |
| Maximum above-the-line deduction | $300 | $300 |
Earned Income Tax Credit (EITC)
| Investment income limit | 2022 | 2023 |
| Excessive investment income limit (“disqualified income limit”) | $10,300 | $11,000 |
| Maximum amount of EITC per number of children | 2022 | 2023 |
| 0 children | $560 | $600 |
| 1 child | $3,733 | $3,995 |
| 2 children | $6,164 | $6,604 |
| 3 or more children | $6,935 | $7,730 |
| Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received) | 2022 | 2023 |
| 0 children | $7,320 | $7,840 |
| 1 child | $10,980 | $11,750 |
| 2 or more children | $15,410 | $16,510 |
| Threshold phaseout amount for joint filers per number of children | 2022 | 2023 |
| 0 children | $15,290 | $16,370 |
| 1 child | $26,260 | $28,120 |
| 2 children | $26,260 | $28,120 |
| 3 or more children | $26,260 | $28,120 |
| Threshold phaseout amount for other filers per number of children | 2022 | 2023 |
| 0 children | $9,160 | $9,800 |
| 1 child | $20,130 | $21,560 |
| 2 children | $20,130 | $21,560 |
| 3 or more children | $20,130 | $21,560 |
| Completed phaseout amount for joint filers per number of children | 2022 | 2023 |
| 0 children | $22,610 | $24,210 |
| 1 child | $49,622 | $53,120 |
| 2 children | $55,529 | $59,478 |
| 3 or more children | $59,187 | $63,398 |
| Completed phaseout amount for other filers per number of children | 2022 | 2023 |
| 0 children | $16,480 | $17,640 |
| 1 child | $43,492 | $46,560 |
| 2 children | $49,399 | $52,918 |
| 3 or more children | $53,057 | $56,838 |
Expatriation
| Covered expatriate | 2022 | 2023 |
| An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) | $178,000 | $190,000 |
| IRC §877A(3) exclusion amount | $767,000 | $821,000 |
Foreign earned income
| Amount excluded from income | 2022 | 2023 |
| Exclusion amount | $112,000 | $190,000 |
Itemized deductions
| Phaseout threshold | 2022 | 2023 |
| Married filing jointly | N/A | N/A |
| Head of household | N/A | N/A |
| Unmarried | N/A | N/A |
| Married filing separately | N/A | N/A |
Kiddie tax
| Unearned income limit | 2022 | 2023 |
| Amount exempt from tax | $1,150 | $1,250 |
| Additional amount taxed at child’s rate | $1,150 | $1,250 |
| Unearned income over this amount generally taxed at parents’ tax rates | $2,300 | $2,500 |
| Parent’s election | 2022 | 2023 |
| Election to include child’s income on parent’s return — child’s gross income requirement | $1,150 – $11,500 | $1,250 – $12,500 |
| AMT | 2022 | 2023 |
| AMT exemption for child subject to kiddie tax | Lesser of $7,950 + child’s earned income or $73,600 | Lesser of $8,800 + child’s earned income or $81,300 |
Medicare tax (additional payroll tax and unearned income contribution tax)
| Payroll tax | 2022 | 2023 |
| Additional Medicare payroll tax (and self-employment tax) percentage rate |
0.90% | 0.90% |
| Applies to wages/self-employment income exceeding | 2022 | 2023 |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
| Tax on unearned income | 2022 | 2023 |
| Unearned income Medicare contribution tax rate | 3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding | 2022 | 2023 |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |
Nanny tax
| Compensation threshold | 2022 | 2023 |
| Domestic employee coverage threshold | $2,400 | $2,600 |
Personal exemption amount
| Amount | 2022 | 2023 |
| Personal exemption amount | N/A | N/A |
| Married filing jointly | 2022 | 2023 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
| Head of household | 2022 | 2023 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
| Unmarried | 2022 | 2023 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
| Married filing separately | 2022 | 2023 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
| Married filing separately | 2022 | 2023 |
| Phaseout threshold amount | N/A | N/A |
| Completed phaseout amount after | N/A | N/A |
“Saver’s Credit”
| Elective deferrals and IRA or ABLE contributions by certain individuals | 2022 | 2023 |
| Maximum credit amount | $1,000 | $1,000 |
| Applicable percentage of 50% applies to AGI | 2022 | 2023 |
| Joint return | $0 – $41,000 | $0 – $43,500 |
| Head of household | $0 – $30,750 | $0 – $32,625 |
| Other | $0 – $20,500 | $0 – $21,750 |
| Applicable percentage of 20% applies to AGI | 2022 | 2023 |
| Joint return | $41,001 – $44,000 | $43,501 – $47,500 |
| Head of household | $30,751 – $33,000 | $32,626 – $35,625 |
| Other | $20,501 – $22,000 | $21,751 – $23,750 |
| Applicable percentage of 10% applies to AGI | 2022 | 2023 |
| Joint return | $44,001 – $68,000 | $47,501 – $73,000 |
| Head of household | $33,001 – $51,000 | $35,626 – $54,750 |
| Other | $22,001 – $34,000 | $23,751 – $36,500 |
| Applicable percentage of 0% applies to AGI | 2022 | 2023 |
| Joint return | Over $68,000 | Over $73,000 |
| Head of household | Over $51,000 | Over $54,750 |
| Other | Over $34,000 | Over $36,500 |
Standard deductions
| Amounts | 2022 | 2023 |
| Married filing jointly or surviving spouse | $25,900 | $27,700 |
| Head of household | $19,400 | $20,800 |
| Unmarried | $12,950 | $13,850 |
| Married filing separately | $12,950 | $13,850 |
| Dependent — standard deduction cannot exceed the greater of | $1,150 or $400 + earned income | $1,250 or $400 + earned income |
| Additional deduction for aged or blind (single or head of household) | $1,750 | $1,850 |
| Additional deduction for aged or blind (all other filing statuses) | $1,400 | $1,500 |
Standard mileage rates
| Applicable rates | 2022 | 2023 |
| Use of auto for business purposes (cents per mile) | $0.585 or $0.625* | TBD |
| Use of auto for medical purposes (cents per mile) | $0.18 or $0.22* | TBD |
| Use of auto for moving purposes (cents per mile) | $0.18 or $0.22* | TBD |
2023 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
| If taxable income is: | Your tax is: |
| Not over $11,000 | 10% of taxable income |
| Over $11,000 to $44,725 | $1,100 + 12% of the excess over $11,000 |
| Over $44,725 to $95,375 | $5,147 + 22% of the excess over $44,725 |
| Over $95,375 to $182,100 | $16,290 + 24% of the excess over $95,375 |
| Over $182,100 to $231,250 | $37,104 + 32% of the excess over $182,100 |
| Over $231,250 to $578,125 | $52,832 + 35% of the excess over $231,250 |
| Over $578,125 | $174,238.25 + 37% of the excess over $578,125 |
Married filing jointly and surviving spouses
| If taxable income is: | Your tax is: |
| Not over $22,000 | 10% of taxable income |
| Over $22,000 to $89,450 | $2,200 + 12% of the excess over $22,000 |
| Over $89,450 to $190,750 | $10,294 + 22% of the excess over $89,450 |
| Over $190,750 to $364,200 | $32,580 + 24% of the excess over $190,750 |
| Over $364,200 to $462,500 | $74,208 + 32% of the excess over $364,200 |
| Over $462,500 to $693,750 | $105,664 + 35% of the excess over $462,500 |
| Over $693,750 | $186,601.50 + 37% of the excess over $693,750 |
Married individuals filing separately
| If taxable income is: | Your tax is: |
| Not over $11,000 | 10% of taxable income |
| Over $11,000 to $44,725 | $1,100 + 12% of the excess over $11,000 |
| Over $44,725 to $95,375 | $5,147 + 22% of the excess over $44,725 |
| Over $95,375 to $182,100 | $16,290 + 24% of the excess over $95,375 |
| Over $182,100 to $231,250 | $37,104 + 32% of the excess over $182,100 |
| Over $231,250 to $346,875 | $52,832 + 35% of the excess over $231,250 |
| Over $346,875 | $93,300.75 + 37% of the excess over $346,875 |
Heads of household
| If taxable income is: | Your tax is: |
| Not over $15,700 | 10% of taxable income |
| Over $15,700 to $59,850 | $1,570 + 12% of the excess over $15,70 |
| Over $59,850 to $95,350 | $6,868 + 22% of the excess over $59,850 |
| Over $95,350 to $182,100 | $14,678 + 24% of the excess over $95,350 |
| Over $182,100 to $231,250 | $35,498 + 32% of the excess over $182,100 |
| Over $231,250 to $578,100 | $51,226 + 35% of the excess over $231,250 |
| Over $578,100 | $172,623.50 + 37% of the excess over $578,100 |
Trusts and estates
| If taxable income is: | Your tax is: |
| Not over $2,900 | 10% of taxable income |
| Over $2,900 to $10,550 | $290 + 24% of the excess over $2,900 |
| Over $10,550 to $14,450 | $2,126 + 35% of the excess over $10,550 |
| Over $14,450 | $3,491 + 37% of the excess over $14,450 |
2022 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)
Single taxpayers
| If taxable income is: | Your tax is: |
| Not over $10,275 | 10% of taxable income |
| Over $10,275 to $41,775 | $1,027.50 + 12% of the excess over $10,275 |
| Over $41,775 to $89,075 | $4,807.50 + 22% of the excess over $41,775 |
| Over $89,075 to $170,050 | $15,213.50 + 24% of the excess over $89,075 |
| Over $170,050 to $215,950 | $34,647.50 + 32% of the excess over $170,050 |
| Over $215,950 to $539,900 | $49,335.50 plus 35% of the excess over $215,950 |
| Over $539,900 | $162,718 plus 37% of the excess over $539,900 |
Married filing jointly and surviving spouses
| If taxable income is: | Your tax is: |
| Not over $20,550 | 10% of taxable income |
| Over $20,550 to $83,550 | $2,055 + 12% of the excess over $20,550 |
| Over $83,550 to $178,150 | $9,615 plus 22% of the excess over $83,550 |
| Over $178,150 to $340,100 | $30,427 plus 24% of the excess over $178,150 |
| Over $340,100 to $431,900 | $69,295 plus 32% of the excess over $340,100 |
| Over $431,900 to $647,850 | $98,671 plus 35% of the excess over $431,900 |
| Over $647,850 | $174,253.50 plus 37% of the excess over $647,850 |
Married individuals filing separately
| If taxable income is: | Your tax is: |
| Not over $10,275 | 10% of taxable income |
| Over $10,275 to $41,775 | $1,027.50 + 12% of the excess over $10,275 |
| Over $41,775 to $89,075 | $4,807.50 plus 22% of the excess over $41,775 |
| Over $89,075 to $170,050 | $15,213.50 plus 24% of the excess over $89,075 |
| Over $170,050 to $215,950 | $34,647.50 plus 32% of the excess over $170,050 |
| Over $215,950 to $323,925 | $49,335.50 plus 35% of the excess over $215,950 |
| Over $323,925 | $87,126.75 plus 37% of the excess over $323,925 |
Heads of household
| If taxable income is: | Your tax is: |
| Not over $14,650 | 10% of taxable income |
| Over $14,650 to $55,900 | $1,465 + 12% of the excess over $14,650 |
| Over $55,900 to $89,050 | $6,415 plus 22% of the excess over $55,900 |
| Over $89,050 to $170,050 | $13,708 plus 24% of the excess over $89,050 |
| Over $170,050 to $215,950 | $33,148 plus 32% of the excess over $170,050 |
| Over $215,950 to $539,900 | $47,836 plus 35% of the excess over $215,950 |
| Over $539,900 | $161,218.50 plus 37% of the excess over $539,900 |
Trusts and estates
| If taxable income is: | Your tax is: |
| Not over $2,750 | 10% of taxable income |
| Over $2,750 to $9,850 | $275 + 24% of the excess over $2,750 |
| Over $9,850 to $13,450 | $1,979 + 35% of the excess over $9,850 |
| Over $13,450 | $3,239 + 37% of the excess over $13,450 |
Business Planning
Adoption Assistance Programs
| Adoption assistance | 2022 | 2023 |
| Maximum amount that can be excluded from employee’s gross income | $14,890 | $15,590 |
| Phaseout threshold amount | $223,410 | $239,230 |
| Completed phaseout amount after | $263,410 | $279,230 |
Earnings subject to FICA taxes (taxable wage base)
| FICA tax | 2022 | 2023 |
| Maximum annual earnings subject to Social Security taxes | $147,000 | $160,200 |
| Social Security and Medicare combined tax rate | 15.30%1 | 15.30%1 |
| OASDI portion (Social Security) | 12.40% | 12.40% |
| Hospital Insurance portion (Medicare) | 2.90%1 | 2.90%1 |
Health insurance deduction for self-employed
| Health insurance premiums | 2022 | 2023 |
| Deduction for health insurance premiums paid by self-employed persons | 100% | 100% |
Qualified transportation fringe benefits
| Qualified transportation fringe benefits | 2022 | 2023 |
| Commuter vehicles and transit pass monthly exclusion amount | $280 | $300 |
| Qualified parking monthly exclusion amount | $280 | $300 |
| Qualified bicycle commuting reimbursement fringe benefit (monthly amount) | N/A | N/A |
Section 179 expensing
| Section 179 expensing | 2022 | 2023 |
| Maximum amount that may be deducted under IRC Section 179 | $1,080,000 | $1,160,000 |
| Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount | $2,700,000 | $2,890,000 |
Small business tax credit for providing health-care coverage
| Amount of credit | 2022 | 2023 |
| Maximum credit percentage | 50% | 50% |
| Partial credit | 2022 | 2023 |
| Number of full-time equivalent employees (FTEs) fewer than: | 25 | 25 |
| Maximum average annual wages less than: | $57,400 | $61,400 |
| Full credit | 2022 | 2023 |
| Number of full-time equivalent employees (FTEs) no more than: | 10 | 10 |
| Maximum average annual wages less than or equal to: | $28,700 | $30,700 |
Special additional first-year depreciation allowance
| Bonus depreciation | 2022 | 2023 |
| “Bonus” depreciation for qualified property acquired and placed in service during specified time periods | 100% | 80% |
Standard mileage rate (per mile)
| Business use of auto | 2022 | 2023 |
| Use of auto for business purposes | $0.585 or $0.625* | TBD |
Education Planning
American Opportunity and Lifetime Learning Credits
| Education credits | 2022 | 2023 |
| Maximum American Opportunity credit | $2,500 | $2,500 |
| Maximum Lifetime Learning credit | $2,000 | $2,000 |
| MAGI phaseout range for American Opportunity credit | 2022 | 2023 |
| Single — phaseout threshold amount | $80,000 | $80,000 |
| Single — completed phaseout amount after | $90,000 | $90,000 |
| Married filing jointly — phaseout threshold amount | $160,000 | $160,000 |
| Married filing jointly — completed phaseout amount after | $180,000 | $180,000 |
| MAGI phaseout range for Lifetime Learning credit | 2022 | 2023 |
| Single — phaseout threshold amount | $80,000 | $80,000 |
| Single — completed phaseout amount after | $90,000 | $90,000 |
| Married filing jointly — phaseout threshold amount | $160,000 | $160,000 |
| Married filing jointly — completed phaseout amount after | $180,000 | $180,000 |
Coverdell education savings accounts
| Coverdell ESAs | 2022 | 2023 |
| Annual contribution limit | $2,000 | $2,000 |
| MAGI phaseout range for Coverdell education savings accounts | 2022 | 2023 |
| Single — phaseout threshold amount | $95,000 | $95,000 |
| Single — completed phaseout amount after | $110,000 | $110,000 |
| Married filing jointly — phaseout threshold amount | $190,000 | $190,000 |
| Married filing jointly — phaseout threshold amount | $220,000 | $220,000 |
Deduction for qualified higher education expenses
| Higher education expenses | 2022 | 2023 |
| Maximum deduction | N/A | N/A |
| MAGI maximum for full $4,000 deduction | 2022 | 2023 |
| Single | N/A | N/A |
| Married filing jointly | N/A | N/A |
| MAGI range for $2,000 deduction | 2022 | 2023 |
| Single — MAGI greater than this amount: | N/A | N/A |
| Single — MAGI does not exceed this amount: | N/A | N/A |
| Married filing jointly — MAGI greater than this amount: | N/A | N/A |
| Married filing jointly — MAGI does not exceed this amount: | N/A | N/A |
Deduction for student loan interest
| Education loan interest deduction | 2022 | 2023 |
| Maximum deduction for interest paid on qualified education loans | $2,500 | $2,500 |
| MAGI phaseout range | 2022 | 2023 |
| Single — phaseout threshold amount | $70,000 | $75,000 |
| Single — completed phaseout amount after | $85,000 | $90,000 |
| Married filing jointly — phaseout threshold amount | $140,000 | $155,000 |
| Married filing jointly — completed phaseout amount after | $170,000 | $185,000 |
Gift tax exclusion
| Gift tax | 2022 | 2023 |
| Annual gift tax exclusion — single individual | $16,000 | $17,000 |
| Annual gift tax exclusion — joint gift | $32,000 | $34,000 |
| Lump-sum gift to 529 plan — single individual | $80,000 | $85,000 |
| Lump-sum gift to 529 plan — joint gift | $160,000 | $170,000 |
Kiddie tax
| Kiddie tax | 2022 | 2023 |
| Children’s unearned income over this amount generally taxed at parents’ tax rates | $2,300 | $2,500 |
U.S. savings bonds interest exclusion for college expenses
| Joint returns | 2022 | 2023 |
| Phaseout threshold for joint returns | $128,650 | $137,800 |
| Completed phaseout amount after | $158,650 | $167,800 |
| Other returns | 2022 | 2023 |
| Phaseout threshold for other returns | $85,800 | $91,850 |
| Completed phaseout amount after | $100,800 | $106,850 |
Protection Planning
Eligible long-term care premium deduction limits:
| LTC premium deduction limits | 2022 | 2023 |
| Age 40 or under | $450 | $480 |
| Age 41-50 | $850 | $890 |
| Age 51-60 | $1,690 | $1,790 |
| Age 61-70 | $4,510 | $4,770 |
| Over age 70 | $5,640 | $5,960 |
Per diem limit:
| LTC periodic payments | 2022 | 2023 |
| Periodic payments for qualified long-term care insurance/certain life insurance | $390 | $420 |
Archer Medical Savings Accounts
| High deductible health plan — self-only coverage |
2022 | 2023 |
| Annual deductible — minimum | $2,450 | $2,650 |
| Annual deductible — maximum | $3,700 | $3,950 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $4,950 | $5,300 |
| High deductible health plan — family coverage | 2022 | 2023 |
| Annual deductible — minimum | $4,950 | $5,300 |
| Annual deductible — maximum | $7,400 | $7,900 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $9,050 | $9,650 |
Flexible spending account (FSA) for health care
| Health care FSAs | 2022 | 2023 |
| Maximum salary reduction contribution | $2,850 | $3,050 |
Health Savings Accounts (HSAs)
| Annual contribution limit | 2022 | 2023 |
| Self-only coverage | $3,650 | $3,850 |
| Family coverage | $7,300 | $7,750 |
| High deductible health plan — self-only coverage |
2022 | 2023 |
| Annual deductible — minimum | $1,400 | $1,500 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $7,050 | $7,500 |
| High deductible health plan — family coverage |
2022 | 2023 |
| Annual deductible — minimum | $2,800 | $3,000 |
| Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed | $14,100 | $15,000 |
| Catch-up contributions | 2022 | 2023 |
| Annual catch-up contribution limit for individuals age 55 or older | $1,000 | $1,000 |
Estate Planning
| Key indexed figures | 2022 | 2023 |
| Annual gift exclusion: | $16,000 | $17,000 |
| Gift and estate tax applicable exclusion amount: | $12,060,000 + DSUEA1 | $12,920,000 + DSUEA1 |
| Noncitizen spouse annual gift exclusion: | $164,000 | $175,000 |
| Generation-skipping transfer (GST) tax exemption: |
$12,060,0002 | $12,920,0002 |
| Special use valuation limit (qualified real property in decedent’s gross estate): | $1,230,000 | $1,310,000 |
2022 and 2023 gift and estate tax rate schedule
| Taxable Estate | Tentative Tax Equals | Plus | Of Amount Over |
| 0 – $10,000 | $0 | 18% | $0 |
| $10,000 – $20,000 | $1,800 | 20% | $10,000 |
| $20,000 – $40,000 | $3,800 | 22% | $20,000 |
| $40,000 – $60,000 | $8,200 | 24% | $40,000 |
| $60,000 – $80,000 | $13,000 | 26% | $60,000 |
| $80,000 – $100,000 | $18,200 | 28% | $80,000 |
| $100,000 – $150,000 | $23,800 | 30% | $100,000 |
| $150,000 – $250,000 | $38,800 | 32% | $150,000 |
| $250,000 – $500,000 | $70,800 | 34% | $250,000 |
| $500,000 – $750,000 | $155,800 | 37% | $500,000 |
| $750,000 – $1,000,000 | $248,300 | 39% | $750,000 |
| $1,000,000 + | $345,800 | 40% | $1,000,000 |
| Credit shelter amount $12,060,000 in 2022 and $12,920,000 in 2023 | Unified credit amount $4,769,800 in 2022 and $5,113,800 in 2023 | ||
Government Benefits
Social Security
| Social Security Cost-of-Living Adjustment (COLA) | 2022 | 2023 |
| For Social Security and Supplemental Security Income (SSI) beneficiaries | 5.90% | 8.70% |
| Tax rate — Employee | 2022 | 2023 |
| FICA tax — Employee | 7.65% | 7.65% |
| Social Security (OASDI) portion of tax |
6.20% | 6.20% |
| Medicare (HI) portion of tax | 1.45%1 | 1.45%1 |
| Tax rate — Self-Employed | 2022 | 2023 |
| Self-Employed | 15.30% | 15.30% |
| Social Security (OASDI) portion of tax | 12.40% | 12.40% |
| Medicare (HI) portion of tax | 2.90%1 | 2.90%1 |
| Maximum taxable earnings | 2022 | 2023 |
| Social Security (OASDI only) | $147,000 | $160,200 |
| Medicare (HI only) | No limit | No limit |
| Quarter of coverage | 2022 | 2023 |
| Earnings required | $1,510 | $1,640 |
| Retirement earnings test — exempt amounts — Under full retirement age — Benefits reduced by $1 for each $2 earned above: | 2022 | 2023 |
| Yearly figure | $19,560 | $21,240 |
| Monthly figure | $1,630 | $1,770 |
| Retirement earnings test — exempt amounts — Year individual reaches full retirement age — Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age): | 2022 | 2023 |
| Yearly figure | $51,960 | $56,520 |
| Monthly figure | $4,330 | $4,710 |
| Retirement earnings test–exempt amounts–Beginning the month individual attains full retirement age | 2022 | 2023 |
| No limit on earnings | No limit on earnings |
| Social Security disability thresholds | 2022 | 2023 |
| Substantial gainful activity (SGA) for the sighted (monthly figure) | $1,350 | $1,470 |
| Substantial gainful activity for the blind (monthly figure) | $2,260 | $2,460 |
| Trial work period (TWP) (monthly figure) | $970 | $1,050 |
| SSI federal payment standard | 2022 | 2023 |
| Individual (monthly figure) | $841 | $914 |
| Couple (monthly figure) | $1,261 | $1,371 |
| SSI resource limits | 2022 | 2023 |
| Individual | $2,000 | $2,000 |
| Couple | $3,000 | $3,000 |
| SSI student exclusion limits | 2022 | 2023 |
| Monthly limit | $2,040 | $2,220 |
| Annual limit | $8,230 | $8,950 |
| Maximum Social Security benefit | 2022 | 2023 |
| Worker retiring at full retirement age (monthly figure) | $3,345 | $3,627 |
| Formula for Monthly Primary Insurance Amount (PIA) | 2022 | 2023 |
| (90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y) | X=$1,024 Y=$6,172 | X=$1,115 Y=$6,721 |
Medicare
| Medicare monthly premium amounts — Part A (hospital insurance) premium | 2022 | 2023 |
| Individuals with 40 or more quarters of Medicare-covered employment | $0 | $0 |
| Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance | Up to $499 | Up to $506 |
| Medicare monthly premium amounts — Part B (medical insurance) monthly premium — for beneficiaries who file an individual income tax return with income that is: | |||
| 2022 | 2023 | 2022 | 2023 |
| Less than or equal to $91,000 |
Less than or equal to $97,000 |
$170.102 | $164.902 |
| $91,001 – $114,000 | $97,001 – $123,000 | $238.10 | $230.80 |
| $114,001 – $142,000 | $123,001 – $153,000 | $340.20 | $329.70 |
| $142,001 – $170,000 | $153,001 – $183,000 | $442.30 | $428.60 |
| $170,001 – $499,999 | $183,001 – $499,999 | $544.30 | $527.50 |
| $500,000 and above | $500,000 and above | $578.30 | $560.50 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who file a joint income tax return with income that is: | |||
| 2022 | 2023 | 2022 | 2023 |
| Less than or equal to $182,000 |
Less than or equal to $194,000 |
$170.102 | $164.902 |
| $182,001 – $228,000 | $194,001 – $246,000 | $238.10 | $230.80 |
| $228,001 – $284,000 | $246,001 – $306,000 | $340.20 | $329.70 |
| $284,001 – $340,000 | $306,001 – $366,000 | $442.30 | $428.60 |
| $340,001 – $749,999 | $366,001 – $749,999 | $544.30 | $527.50 |
| $750,000 and above | $750,000 and above | $578.30 | $560.50 |
| Medicare monthly premium amounts–Part B (medical insurance) monthly premium–for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is: | |||
| 2022 | 2023 | 2022 | 2023 |
| Less than or equal to $91,000 |
Less than or equal to $97,000 |
$170.102 | $164.902 |
| $91,001 – $408,999 | $97,001 – $402,999 | $544.30 | $527.50 |
| $409,000 and above | $403,000 and above | $578.30 | $560.50 |
| Original Medicare plan deductible and coinsurance amounts — Part A (hospital insurance) | 2022 | 2023 |
| Deductible per benefit period | $1,556 | $1,600 |
| Coinsurance per day for 61st to 90th day of each benefit period | $389 | $400 |
| Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days–nonrenewable) | $778 | $800 |
| Original Medicare plan deductible and coinsurance amounts | 2022 | 2023 |
| Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period | $194.50 | $200 |
| Original Medicare plan deductible and coinsurance amounts — Part B (medical insurance) annual deductible | 2022 | 2023 |
| Individual pays 20 percent of the Medicare-approved amount for services after deductible is met | $233 | $226 |
Medicaid
| Income threshold | 2022 | 2023 |
| Monthly income threshold for income-cap states (“300 percent cap limit”) | $2,523 | $2,742 |
| Monthly maintenance needs allowance for at-home spouse | 2022 | 2023 |
| Minimum3 | $2,177.50 | $2,288.75 |
| Maximum | $3,435.00 | $3,715.50 |
| Community spousal resource allowance | 2022 | 2023 |
| Minimum | $27,480.00 | $29,724.00 |
| Maximum | $137,400.00 | $148,620.00 |
Retirement Planning
Employee/individual contribution limits
| Elective deferral limits | 2022 | 2023 |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 [Includes Roth 401(k) and Roth 403(b) contributions] |
Lesser of $20,500 or 100% of participant’s compensation |
Lesser of $22,500 or 100% of participant’s compensation |
| SIMPLE 401(k) plans and SIMPLE IRA plans1 | Lesser of $14,000 or 100% of participant’s compensation |
Lesser of $15,500 or 100% of participant’s compensation |
| IRA contribution limits | 2022 | 2023 |
| Traditional IRAs | Lesser of $6,000 or 100% of earned income | Lesser of $6,500 or 100% of earned income |
| Roth IRAs | Lesser of $6,000 or 100% of earned income | Lesser of $6,500 or 100% of earned income |
| Additional “catch-up” limits (individuals age 50 or older) | 2022 | 2023 |
| 401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2 | $6,500 | $7,500 |
| SIMPLE 401(k) plans and SIMPLE IRA plans | $3,000 | $3,500 |
| IRAs (traditional and Roth) | $1,000 | $1,000 |
Employer contribution/benefit3 limits
| Defined benefit plan limits | 2022 | 2023 |
| Annual contribution limit per participant | No predetermined limit. Contributions based on amount needed to fund promised benefits | No predetermined limit. Contributions based on amount needed to fund promised benefits. |
| Annual benefit limit per participant | Lesser of $245,000 or 100% of average compensation for highest three consecutive years | Lesser of $265,000 or 100% of average compensation for highest three consecutive years |
| Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans] | 2022 | 2023 |
| Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans) | Lesser of $61,000 or 100% (25% for SEP) of participant’s compensation | Lesser of $66,000 or 100% (25% for SEP) of participant’s compensation |
| Maximum tax-deductible employer contribution [not applicable to 403(b) plans] | 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans | 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans |
Compensation limits/thresholds
| Retirement plan compensation limits | 2022 | 2023 |
| Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs) | $305,000 | $330,000 |
| Compensation threshold used to determine a highly compensated employee | $135,000 (when 2022 is the look-back year) |
$150,000 (when 2023 is the look-back year) |
| Compensation threshold used to determine a key employee in a top-heavy plan | $1 for more-than-5% owners, $200,000 for officers, $150,000 for more-than-1% owners |
$1 for more-than-5% owners, $215,000 for officers, $150,000 for more-than-1% owners |
| Compensation threshold used to determine a qualifying employee under a SIMPLE plan | $5,000 | $5,000 |
| Compensation threshold used to determine a qualifying employee under a SEP plan | $650 | $750 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as: | 2022 | 2023 |
| Single | $68,000 – $78,000 | $73,000 – $83,000 |
| Married filing jointly | $109,000 – $129,000 | $116,000 – $136,000 |
| Married filing separately | $0 – $10,000 | $0 – $10,000 |
| Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a: | 2022 | 2023 |
| Joint return with a spouse who is covered by an employer-sponsored retirement plan | $204,000 – $214,000 | $218,000 – $228,000 |
| Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as: | 2022 | 2023 |
| Single | $129,000 – $144,000 | $138,000 – $153,000 |
| Married filing jointly | $204,000 – $214,000 | $218,000 – $228,000 |
| Married filing separately | $0 – $10,000 | $0 – $10,000 |
Investment Planning
Maximum tax on long-term capital gains and qualified dividends
| 0% rate applies (taxable income thresholds) | 2022 | 2023 |
| Single | Up to $41,675 | Up to $44,625 |
| Married filing jointly | Up to $83,350 | Up to $89,250 |
| Married filing separately | Up to $41,675 | Up to $44,625 |
| Head of household | Up to $55,800 | Up to $59,750 |
| 15% rate applies (taxable income thresholds) | 2022 | 2023 |
| Single | $41,675 to $459,750 | $44,625 to $492,300 |
| Married filing jointly | $83,350 to $517,200 | $89,250 to $553,850 |
| Married filing separately | $41,675 to $258,600 | $44,625 to $276,900 |
| Head of household | $55,800 to $488,500 | $59,750 to $523,050 |
| 20% rate applies (taxable income thresholds) | 2022 | 2023 |
| Single | Over $459,750 | Over $492,300 |
| Married filing jointly | Over $517,200 | Over $553,850 |
| Married filing separately | Over $258,600 | Over $276,900 |
| Head of household | Over $488,500 | Over $523,050 |
Unearned income Medicare contribution tax (“net investment income tax”)
| Amount of tax | 2022 | 2023 |
| Tax percentage | 3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding: | 2022 | 2023 |
| Individuals | $200,000 | $200,000 |
| Married filing jointly | $250,000 | $250,000 |
| Married filing separately | $125,000 | $125,000 |