November 29, 2022

2022 and 2023 Inflation/Cost of Living Updates

Year-End Tax Guide

Tax Benefits
STANDARD DEDUCTION	2022	2023
Married-Joint	$25,900	$27,700
Single	$12,950	$13,850
Married-Separate	$12,950	$13,850
Head of Household	$19,400	$20,800
Foreign Earned Income Exclusion	$112,000	$120,000
Maximum Taxable Social Security Earnings Base	$147,000	$160,200

2022 Individual Income Tax Rates
RATE	SINGLE	HEAD OF HOUSEHOLD	MARRIED-JOINT	MARRIED-SEPERATE
10%	$0 – $10,275	$0 – $14,650	$0 – $20,550	$0 – $10,275
12%	$10,276 – $41,775	$14,651 – $55,900	$20,551 – $83,550	$10,276 – $41,775
22%	$41,776 – $89,075	$55,901 – $89,050	$83,551 – $178,150	$41,776 – $89,075
24%	$89,076 – $170,050	$89,051 – $170,050	$178,151 – $340,100	$89,076 – $170,050
32%	$170,051 – $215,950	$170,051 – $215,950	$340,101 – $431,900	$170,051 – $215,950
35%	$215,951 – $539,900	$215,951 – $539,900	$431,901 – $647,850	$215,951 – $323,925
37%	Over $539,900	Over $539,900	Over $647,850	Over $323,925

2023 Individual Income Tax Rates
RATE	SINGLE	HEAD OF HOUSEHOLD	MARRIED-JOINT	MARRIED-SEPERATE
10%	$0 – $11,000	$0 – $15,700	$0 – $22,000	$0 – $11,000
12%	$11,001 – $44,725	$15,701 – $59,850	$22,001 – $89,450	$11,001 – $44,725
22%	$44,726 – $95,375	$59,851 – $95,350	$89,451 – $190,750	$44,726 – $95,375
24%	$95,376 – $182,100	$95,351 – $182,100	$190,751 – $364,200	$95,376 – $182,100
32%	$182,101 – $231,250	$182,101 – $231,250	$364,201 – $462,500	$182,101 – $231,250
35%	$231,251 – $578,125	$231,251 – $578,100	$462,501 – $693,750	$231,251 – $346,875
37%	Over $578,125	Over $578,100	Over $693,750	Over $346,875

2022 Estates & Trusts Income Tax Brackets
OVER	BUT NOT OVER	THE TAX IS	…OF AMOUNT OVER
$0	$2,750	10%	$0
$2,750	$9,850	$275 + 24%	$2,750
$9,850	$13,450	$1,979 + 35%	$9,850
$13,450		$3,239 + 37%	$13,450

2023 Estates & Trusts Income Tax Brackets
OVER	BUT NOT OVER	THE TAX IS	…OF AMOUNT OVER
$0	$2,900	10%	$0
$2,900	$10,550	$290 + 24%	$2,900
$10,550	$14,450	$2,126 + 35%	$10,550
$14,450		$3,491 + 37%	$14,450

2022 Alternative Minimum Tax Exemption
	2022 EXECPTION	PHASE-OUT THRESHOLD	COMPLETE PHASE-OUT OF EXEMPTION
Married Filing Jointly	$118,100	$1,079,800	$1,552,200
Married Filing Single	$59,050	$539,900	$776,100
Single	$75,900	$539,900	$843,500
Estates and Trusts	$26,5500

2023 Alternative Minimum Tax Exemption
	2023 EXECPTION	PHASE-OUT THRESHOLD	COMPLETE PHASE-OUT OF EXEMPTION
Married Filing Jointly	$126,500	$1,156,300	$1,662,300
Married Filing Single	$63,250	$578,150	$831,150
Single	$81,300	$578,150	$903,350
Estates and Trusts	$28,400	$94,600	$208,200

2022 Taxable Income Threshold for Long-Term Capital Gains Rate
FILING STATUS	0% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS	15% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS	20% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
Married Filing Jointly	Up to $83,350	$83,351 – $517,200	Over $517,200
Head of Household	Up to $55,800	$55,801 – $488,500	Over $488,500
Single	Up to $41,675	$41,676 -$459,750	Over $459,750
Married Filing Separately	Up to $41,675	$41,676 – $258,600	Over $258,600
Estates & Trusts	Up to $2,800	$2,801 – $13,700	$13,700

2023 Taxable Income Threshold for Long-Term Capital Gains Rate
FILING STATUS	0% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS	15% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS	20% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
Married Filing Jointly	Up to $89,250	$89,251 – $553,850	Over $553,850
Head of Household	Up to $59,750	$59,751 – $523,050	Over $523,050
Single	Up to $44,625	$44,626 – $492,300	Over $492,300
Married Filing Separately	Up to $44,625	$44,626 – $276,900	Over $276,900
Estates & Trusts	Up to $3,000	$3,001 – $14,650	Over $14,650

Gift & Estate Tax Exemptions
	2022	2023
Gift Tax Exemption	$12,060,000	$12,920,000
Estate Tax Exemption	$12,060,000	$12,920,000
GST Tax Exemption	$12,060,000	$12,920,000
Annual Exclusion	$16,000	$17,000
Annual Exclusion (For gifts to spouses who are not U.S. Citizens)	$164,000	$175,000

2022 Dollar Limit for Retirement Plans
PLAN TYPES	2022 LIMITS	2023 LIMITS
Defined Contribution Plans	$61,000	$66,000
Defined Benefit Plans	$245,000	$265,000
Defined Contribution Plans – 401(k), 403(B) and 457 and Thrift Plans under Age 50	$20,500	$22,500
Age 50 and Older	$27,000	$30,000
Simple Plans: Under Age 50	$14,000	$15,500
Simple Plans: Age 50 and Older	$17,000	$19,000
Qualified Plans Compensation Limit	$305,000	$330,000
Traditional IRA AGI Phase-Out (MFJ with participant in employer plan)	$109,000	$116,000
Traditional IRA AGI Phase-Out (MFJ with taxpayer not an active participant, spouse in employer plan)	$204,000	$218,000
Traditional IRA AGI Phase-Out (Single/HOH)	$68,000	$73,000
Roth IRA Contributions AGI Phase-Out (Single/HOH)	$129,000	$138,000
Roth IRA Contributions AGI Phase-Out (MFJ)	$204,000	$218,000
Age 50 + IRA Catch-Up Contribution	$1,000	$1,000
Age 50 + Catch-up contributions to 401(k), 403(B), and 457 and Thrift Plans	$6,500	$7,500
Catch-up contributions to SIMPLE’s Age 50 and older	$3,000	$3,500
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (MFJ)	$68,000	$73,000
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (HOH)	$51,000	$54,750
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (Single/MFS)	$34,000	$36,500
OTHER THRESHOLDS	2022 LIMITS	2023 LIMITS
SEP Annual Contribution Limit (the lesser of 25% of the first $330,000 of compensation or:	$61,000	$66,000
Key Employee in a Top-Heavy Plan	$200,000	$215,000
Highly Compensated Employee	$135,000	$150,000