Tax Day is Monday, April 15, 2024. You must file your 2023 tax returns by this date!
Various changes are listed below. I am happy to discuss any of these with you, or any questions that you have about anything that I haven’t covered. Please call me at (812) 327-9108 or email me at cathy@cmartinaccounting.com to discuss any issues.
Tax Brackets for 2023 (taxes due April 15, 2024)
Tax rate |
Single |
Married filing jointly |
Married filing separately |
Head of household |
10% |
$0 to $11,000. |
$0 to $22,000. |
$0 to $11,000. |
$0 to $15,700. |
12% |
$11,001 to $44,725. |
$22,001 to $89,450. |
$11,001 to $44,725. |
$15,701 to $59,850. |
22% |
$44,726 to $95,375. |
$89,451 to $190,750. |
$44,726 to $95,375. |
$59,851 to $95,350. |
24% |
$95,376 to $182,100. |
$190,751 to $364,200. |
$95,376 to $182,100. |
$95,351 to $182,100. |
32% |
$182,101 to $231,250. |
$364,201 to $462,500. |
$182,101 to $231,250. |
$182,101 to $231,250. |
35% |
$231,251 to $578,125. |
$462,501 to $693,750. |
$231,251 to $346,875. |
$231,251 to $578,100. |
37% |
$578,126 or more. |
$693,751 or more. |
$346,876 or more. |
$578,101 or more. |
Higher Standard Deductions in 2023
When you pay taxes, you have the option of taking the standard deduction or itemizing your deductions. If you itemize, you calculate your deductions one by one. Itemizing is more of a hassle, but it’s worth it if your itemized deductions exceed the amount of the standard deduction.
For tax year 2023, the standard deduction went up slightly to adjust for inflation.
Standard Deduction |
||
|
Filing Status |
2022 |
2023 |
|
Single |
$12,950 |
$13,850 |
|
Married Filing Jointly |
$25,900 |
$27,700 |
|
Married Filing Separately |
$12,950 |
$13,850 |
|
Head of Household |
$19,400 |
$20,800 |
Child Tax Credit/Advance Child Tax Credit Payments
For tax year 2023, the Child Tax Credit reverts back to the benefits available prior to the American Rescue Plan as follows:
Reverts back to up to $2,000 for 2022 – 2025
Each dependent child must be under age 17
Refundable up to $1,400, but no longer fully refundable
The credit is available if you earn up to $200,000 as single taxpayer or head of household (or up to $400,000 if you are a married couple filing jointly)
Earned Income Tax Credit for 2023
For 2023 (taxes filed in 2024), the earned income credit ranges from $600 to $7,430, depending on your filing status and how many children you have.
Below are the maximum 2023 earned income tax credit amounts, plus the most you can earn before losing the benefit altogether.
Number of Children |
Maximum earned income tax credit |
Max AGI, single or head of household filers |
Max AGI, married joint filers |
0 |
$600 |
$17,640 |
$24,210 |
1 |
$3,995 |
$46,560 |
$53,120 |
2 |
$6,604 |
$52,918 |
$59,478 |
3 or more |
$7,430 |
$56,838 |
$63,398 |
HSA Contribution Limits
2023 HSA contribution limits
The HSA contribution limits for 2023 is $3,850 for self-only coverage and $7,750 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.
2024 HSA contribution limits
The HSA contribution limits for 2024 is $4,150 for self-only coverage and $8,300 for family coverage. Those 55 and older can contribute an additional $1,000 as a catch-up contribution.
Home Energy Credits
There are some home energy credits available this year for improvements made to your primary residence.
Who can claim the credits
You can claim either the Energy Efficient Home Improvement Credit or the Residential Energy Clean Property Credit for the year when you make qualifying improvements.
Homeowners who improve their primary residence will find the most opportunities to claim a credit for qualifying expenses. Renters may also be able to claim credits, as well as owners of second homes used as residences.
The credits are never available for improvements made to homes that you don’t use as a residence.
Energy Efficient Home Improvement Credit
These expenses may qualify if they meet requirements detailed on energy.gov:
Exterior doors, windows, skylights and insulation materials
Central air conditioners, water heaters, furnaces, boilers and heat pumps
Biomass stoves and boilers
Home energy audits
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
2022: 30%, up to a lifetime maximum of $500
2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit