by Jeff LaBelle, Gulf Coast Wealth Advisors

SARASOTA, FLORIDA, UNITED STATES, October 20, 2022 /EINPresswire.com/ -- "As a result of the hyper inflation numbers, the IRS has stepped in to raise the standard deduction and tax brackets for 2023. In addition, income thresholds for all tax brackets will see an increase. Therefore, most paychecks beginning in January will show an increase", says Jeff LaBelle.

Also increasing will be the standard deductions. For a married couple filing a joint return, that deduction would jump to $27,700 in 2023, up from $25,900 in 2022. For singles and couples filing separately, it will rise to $13,850. This is an increase from $12,950. Head of households will increase to $20,800 from $19,400. And the standard deduction for someone who is 65 or older are able to claim an additional $1500 per person which is an increase of $100 from a year earlier. Lastly, if that senior is unmarried, the additional deduction will be $1850, up from $1750.

The tax rate on qualified stock dividends and long-term capital gains will also be adjusted. If a married couple's income, including gains, is below $89,250, they would not incur any tax. Above that, the gains rate would be 15% until their income hits $553,850, which then would be a 20% tax. For individual filers, a 15% capital gains and dividends rate kicks in on income above $44,625 in 2023. The 20% capital gains rate with single individuals when their income exceeds $492,300 in 2023, up from $459,760.

Jeffrey LaBelle
Gulf Coast Wealth Advisors
+1 941-362-0700
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