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

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