Some Americans may have lower tax bills when they file for 2023 after the IRS adjusted tax brackets and increased deductions to counter the soaring price tags on groceries and other daily staples.
October 19, 2022, 7:28 AMScott Olson/Getty Images
Consumer prices rose by about 8.2% in September from the year-earlier period, with grocery prices spiking 13%, the Bureau of Labor Statistics said. Increases in pay haven't kept pace for many workers, with average hourly wages decreasing 3% year over year in September, when seasonally adjusted, according to the bureau's statistics.
The standard deduction for married couples will increase to $27,700, up $1,800 from the previous year. For single filers, it will be $13,850, up $900, the IRS said. Those increases mark an acceleration from the previous year's standard deduction hikes, which were $800 for married filers and $400 for single ones.
Marginal tax rates are being adjusted for inflation, with the lowest tax rate of 10% now applying to single fillers making $11,000 or less per year, up from $10,275. Couples would need to make less than $22,000, up from $20,550.
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