Tax rate schedules for 2023 include new rates because of inflation, reflecting a 7% rise. The IRS recently announced these new rates. Financial planning and wealth management can help make things easier for taxpayers to invest their assets in ways that could decrease their tax burden.
What Are the New Tax Brackets?
The new tax brackets for 2023 are as follows:
10% – Under $11,000 or under, under $22,000 or less for married couples filing jointly
12% – Over $11,000 or $22,000 for married couples filing jointly
22% – Over $44,725 or $89,450 for married couples filing jointly
24% – Over $95,375 or $190,720 for married couples filing jointly
32% – Over $182,100 or $364,200 for married couples filing jointly
35% – Over $231,250 or $462,500 for married couples filing jointly
37% – Over $578,125 or $693,750 for married couples filing jointly
Changes to tax rates will ultimately impact all of us. Many experts advise having diversified portfolios to help better weather these changes.
A mixture of pre-tax, post-tax, and tax-free vehicles will help you overcome these changes in the market that could impact your savings. Diversification can help protect your investments against future tax rate increases.
What Do Tax Rate Schedules for 2023 Mean for Your Overall Financial Outlook?
The standard deduction reflects a 7% rise over the past year. These annual adjustments carry extra significance for your financial situation, so it is important to start planning for the coming changes soon.
The new standard deduction rates are as follows:
For married couples filing jointly, $27,700, up $1,800 the previous fling year
For single taxpayers and married individuals who file separately, $13,850, up $900 from the previous filing year
Heads of household, $20,800, up $1,400 from the previous filing year
Saving money by taking advantage of deductions can help provide you with more money to invest. The good thing to know is that there are many options that offer maximum flexibility for your needs.
What Do These Changes Mean for Your Finances?
Market headwinds are something that remain largely out of control. With that being the case, now is not the time to take a passive approach to these changes. There are options that you can use even in a volatile market. Reaching out to experts who can help you make the most of your opportunities is a good plan.
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