Tax Rate Schedules for 2023: What You Need to Know

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Tax rate schedules for 2023 include new rates because of inflation, reflecting a 7% rise. The IRS recently announced these new rates, allowing taxpayers to make plans for dealing with the changes.

Financial planning and wealth management can help make things easier for taxpayers to invest their assets in ways that could decrease their tax burden. Read on to learn more about what these changes may mean for you.

What Are the New Tax Brackets?

The new tax brackets for 2023 are as follows:

  • 10% – Under $11,000 or under, under $22,000 or less for married couples filing jointly
  • 12% – Over $11,000 or $22,000 for married couples filing jointly
  • 22% – Over $44,725 or $89,450 for married couples filing jointly
  • 24% – Over $95,375 or $190,720 for married couples filing jointly
  • 32% – Over $182,100 or $364,200 for married couples filing jointly
  • 35% – Over $231,250 or $462,500 for married couples filing jointly
  • 37% – Over $578,125 or $693,750 for married couples filing jointly

Changes to tax rates will ultimately impact all of us, for better or worse. Many experts advise having diversified portfolios to help better weather these changes.

A mixture of pre-tax, post-tax, and tax-free vehicles will help you overcome these changes in the market that could impact your savings. Diversification can help protect your investments against future tax rate increases, so you get to keep more of your hard-earned money.

What Do Tax Rate Schedules for 2023 Mean for Your Overall Financial Outlook?

What do tax rate schedules for 2023 mean for your finances? The inflation rate is staying at some of the highest levels in four decades, a situation that could continue to persist for quite some time.

The standard deduction reflects a 7% rise over the past year. These annual adjustments carry extra significance for your financial situation, so it is important to start planning for the coming changes soon.

The new standard deduction rates are as follows:

  • For married couples filing jointly, $27,700, up $1,800 the previous fling year
  • For single taxpayers and married individuals who file separately, $13,850, up $900 from the previous filing year
  • Heads of household, $20,800, up $1,400 from the previous filing year

Saving money by taking advantage of deductions can help provide you with more money to invest. The good thing to know is that there are many options that offer maximum flexibility for your needs.

Core Consumer Price Index Changes

The core consumer price index jumped to a 40-year high. The U.S. inflation rate, presently just a little over 8%, is rising at its highest pace since the 1980s.

What Do All These Changes Mean for Your Finances?

Market headwinds are something that remain largely out of control. With that being the case, now is not the time to take a passive approach to these changes.

There are options that you can make use of, even in a volatile market. Reaching out to experts who can help you make the most of your opportunities is a good plan to go by.

Prevail takes an approach to investing and wealth creation for those who prefer a “thinking outside the box” strategy. Contact us today to learn more about how tax rate schedules for 2023 may impact you and your future planning.

Kerry Lawing

CEO

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