Tax Day 2023 is just about here. Here is what you need to know about your income taxes in 2023.
The deadline to file taxes for the 2022 tax year is quickly approaching, so now is the perfect time to go over everything you need to know! Here are the biggest changes and most important statistics for Tax Day 2023.
1. Tax Day
As the traditional date of Tax Day, Apr. 15, falls on a Saturday this year, the date by which your taxes must be filed is pushed back to the next workday; however, Emancipation Day, which is Apr. 16, falls on a Sunday, so it will be observed by the U.S. government on Monday, Apr. 17. Therefore, Tax Day in 2023 is Apr. 18. If you have yet to file, it could be a good idea to make use of the extra time to avoid incurring penalties.
2. Tax Brackets
Tax rates for taxable income earned during the 2022 year are as follows:
| 2022 Marginal Tax Rate | Single Filers | Married and Filing Jointly | Head of Household | Married and Filing Separately |
| 10% | $0 to $10,275 | $0 to $20,550 | $0 to $14,650 | $0 to $10,275 |
| 12% | $10,276 to $41,775 | $20,551 to $83,550 | $14,651 to $55,900 | $10,276 to $41,775 |
| 22% | $41,776 to $89,075 | $83,551 to $178,150 | $55,901 to $89,050 | $41,776 to $89,075 |
| 24% | $89,076 to $170,050 | $178,151 to $340,100 | $89,051 to $170,050 | $89,076 to $170,050 |
| 32% | $170,051 to $215,950 | $340,101 to $431,900 | $170,051 to $215,950 | $170,051 to $215,950 |
| 35% | $215,951 to $539,900 | $431,901 to $647,850 | $215,951 to $539,900 | $215,951 to $323,925 |
| 37% | Over $539,900 | Over $647,850 | Over $539,900 | Over $323,925 |
3. Tax-Advantaged Accounts
If you contribute to an individual retirement account, or an IRA, the deadline to make contributions for the 2022 tax year is Apr. 18, and the limit is $6,000, or $7,000 for those 50 or older. The contribution limits will go up to $6,500 and $7,500 respectively for the 2023 tax year. These accounts can help you achieve tax-advantaged growth and distribution. For example, a traditional IRA is built with pre-tax funds then grows and is distributed tax-deferred. A Roth IRA is built with post-tax funds then grows and is distributed tax-free. At Choice Financial Services, we can use your circumstances and goals to help you determine whether a traditional or a Roth IRA would be right for you.
To learn more about financial topics like annual income taxes, please give us a call! You can reach Choice Financial Services, Inc. in Oklahoma City by calling 405-843-5540 or by emailing info@choicefinancial.com.
Sources:
- https://www.irs.gov/pub/irs-drop/rp-21-45.pdf
- https://www.irs.gov/retirement-plans/traditional-and-roth-iras
This is not intended as tax advice and should not be relied on for the purpose of avoiding any tax penalties. You should discuss any tax or legal matters with the appropriate professional.
