News and Tax Rates

Welcome to some IRS bullet points of the 2023 tax filing year:

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1.  Standard Deduction increase:

The 2023 standard deduction is $13,850 for single filers and those married filing separately, $27,700 for those married filing jointly, and $20,800 for heads of household.  

2. The child tax credit 

The maximum tax credit per qualifying child is $2,000 for children under 17. For the refundable portion of the credit (or the additional child tax credit), you may receive up to $1,600 per qualifying child.

3. Income thresholds drop for the child and dependent care credit

Families can claim up to $3,000 in dependent care expenses for one child/dependent and $6,000 for two children/dependents per year. The credit is worth between 20% and 35% of these expenses, depending on a family's income.

4. Itemized Deductions: Same as 2022

• SALT (state and local taxes) State and local taxes: The deduction for state and local income taxes, property taxes, and real estate taxes is capped at $10,000.

• Charitable donations: In 2023, the annual income tax deduction limits for gifts to public charities1 are 30% of AGI for contributions of non-cash assets—if held for more than one year—and 60% of AGI for contributions of cash. If you give both can and non-cash assets, the overall limit is generally 50% of AGI.

• Medical expenses: Only medical expenses that exceed 7.5% of adjusted gross income (AGI) can be deducted in 2023.

• Miscellaneous deductions: No miscellaneous itemized deductions are allowed.

5.  IRA and 401(k) limits are slightly higher. Contribution limits are:

         $6,500 up to age 50, $7,500 age 50 and up.

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Tax Scams/Consumer Alerts

If it sounds too good to be true, it probably is!
In recent years, thousands of people have lost millions of dollars and their personal information to tax scams and fake IRS communication.

REMEMBER: The IRS doesn't initiate contact with taxpayers by phone calls, email, text messages or social media channels to request personal or financial information.  In addition, IRS does not threaten taxpayers with lawsuits, imprisonment or other enforcement action.  Being able to recognize these tell-tale signs of a phishing or tax scam could save you from becoming a victim.

THINK BEFORE YOU DONATE:

Here are the 'good guys' or, even better, choose to donate to a local nonprofit.
 

The American Legion National Commander receives a $0.00 salary

The Veterans of Foreign Wars National Commander receives a $0.00 salary

The Disabled American Veterans National Commander receives a $0.00 salary

The Military Order of Purple Hearts National Commander receives a $0.00 salary

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