By adjusting the income thresholds each year to account for inflation, the IRS is acknowledging that the economic landscape is changing and that you should not be penalized if your salary’s purchas…
| NerdWallet
And while persistently high inflation is hardly cheerful news, a set of annual adjustments that are tied to an inflation index could provide relief in one unexpected area — taxes.Typically in early November, the IRS releases a swath of adjustments to various tax provisions, includingThese adjustments are tied to the Chained Consumer Price Index for All Urban Consumers, or C-CPI-U, and the IRS’ goal is to prevent bracket creep.
Those with health savings accounts, or HSAs — which allow you to contribute a certain amount of your salary pretax for medical expenses — may be able to contribute up to $3,850 for themselves or up to $7,750 for a family in 2023.Though these adjustments will likely allow taxpayers to take a more generous standard deduction or funnel more money into accounts that could lower taxable income, there’s no guarantee tax bills will be smaller — numerous factors affect your overall tax liability.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GOP attack ads smash Dems for cozying up to IRS: ‘They will come after you’Republicans are hammering Democrats for granting tens of billions in funding to the IRS earlier this year. The ads argue the IRS will now target middle and lower-class families.
Read more »
Inflation Causes IRS to Raise Tax Brackets, Standard Deduction by 7%To reflect higher inflation, the agency implemented adjustments to key tax code parameters for 2023 such as the standard deduction and the income thresholds where tax rates take effect.
Read more »
IRS releases details on how your tax rate could change next yearThe Internal Revenue Service released inflation-adjusted tax brackets for next year on Tuesday. The changes could boost your paycheck in 2023.
Read more »
You can keep more money from the IRS next year, thanks to inflationYou can keep more money from the IRS next year. The agency is raising income thresholds for all tax brackets because of inflation.
Read more »
IRS to hold public auction of gold seized from Brighton manIf you’re looking for a literal golden investment, the IRS is holding a public auction Wednesday at 11 a.m. in Denver for gold and silver seized from a Brighton man who didn’t pay his taxes. via JGonTV
Read more »