What You Need to Know About Filing Taxes in 2023

Urban Wealth Management |

As we begin a new year, it's important to start thinking about filing your taxes for 2023. Whether you're a first-time filer or a seasoned pro, it's always a good idea to stay up-to-date on the latest tax rules and regulations. In this blog post, we'll cover some of the key things you need to know about filing your taxes in 2023.

New Tax Brackets

One of the most significant changes to the tax code for 2023 is the adjusted tax brackets. The brackets have been adjusted to account for inflation, which means you may fall into a different tax bracket than you did in the previous year. The new tax brackets for 2023 for single filers are as follows:

  • 10% on income up to $11,000
  • 12% on income between $11,001 and $44,725
  • 22% on income between $44,726 and $95,375
  • 24% on income between $95,376 and $182,100
  • 32% on income between $182,101 and $231,250
  • 35% on income between $231,251 and $578,125
  • 37% on income over $578,125

Married couples filing jointly, head of household, and married filing separately also have their own tax brackets.

Standard Deduction

For 2023, the standard deduction has been increased to $12,950 for single filers and $25,900 for married couples filing jointly. This means that if you don't have enough deductions to itemize, you can still reduce your taxable income by taking the standard deduction.

Itemized Deductions

If you decide to itemize your deductions, you'll need to be aware of a few changes to the rules in 2023. For example, the limit for charitable contributions has been increased to 60% of your adjusted gross income. Medical expense deductions are only available for expenses that exceed 7.5% of your adjusted gross income.

Tax Credits

There are several tax credits that can help lower your tax bill in 2023. For example, the Child Tax Credit has been expanded, and families can receive up to $3,000 per child under 18 years old. There's also a new Credit for Other Dependents that provides up to $500 per dependent who doesn't qualify for the Child Tax Credit.

Key Tax Deadlines

It's essential to keep track of the tax deadlines in 2023 to avoid penalties and interest charges. The following are some important tax deadlines for the year:

  • April 18th, 2023: Deadline for filing 2022 tax returns and paying any taxes owed.
  • June 15th, 2023: Deadline for filing a tax return if you're living outside the United States.
  • September 15th, 2023: Deadline for the third-quarter estimated tax payments.
  • December 15th, 2023: Deadline for the fourth-quarter estimated tax payments.

In conclusion, filing your taxes can be a complex process, but by staying informed and working with a qualified tax professional, you can navigate the process with confidence. At Urban Wealth Management, we offer tax planning and preparation services to help our clients achieve their financial goals. Contact us to learn more about our tax services and how we can help you file your taxes in 2023.