IRS Tax Brackets 2023: How Much Is The Standard Deduction For 2023?

With inflation in the United States reaching roughly 8% post-coronavirus, several families have battled to keep up with the increased cost of food, gas, and services.

However, there may be one silver lining: the IRS has raised tax brackets, which means Americans may get some money back from Uncle Sam.

The standard deduction, which the IRS ignores, has climbed by about 7% depending on income, the most since 1985.

The standard deduction for single taxpayers has increased by 900 dollars, from $12,950 this year to 13,850 in 2023.

Joint filers (e.g., a married couple) will see their deduction increase from 25,900 to 27,700 dollars in 2023

while heads of households will see their deduction increase from 19,400 to 20,800 dollars.

Another method through which people in the United States could save money is if the thresholds for each tax bracket were raised.

For example, if you earned $42,000 in 2022, you would no longer be in the 22pc bracket; instead, you would be entirely in the 12pc bracket.

However, David Caplan, a certified public accountant from Lafayette Hill, told the Philadelphia Inquirer that the savings may not be as significant as you might think.

Though the IRS makes adjustments every year, these are unprecedented in this generation, which is leading to the possibility of increased savings.