IRS: Here are the new income tax brackets for 2023

[1srelluc]

Released yesterday link

The IRS has released higher federal tax brackets for 2023 to adjust for inflation.
The standard deduction is increasing to $27,700 for married couples filing together and $13,850 for single taxpayers.

There are also changes to the alternative minimum tax, estate tax exemption, earned income tax credit and flexible spending account limits, among others.

Amid soaring inflation, the IRS this week announced higher federal income tax brackets and standard deductions for 2023.

The agency has boosted the income thresholds for each bracket, applying to tax year 2023 for returns filed in 2024.

These brackets show how much you’ll owe for federal income taxes on each portion of your “taxable income,” calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

Higher standard deduction
The standard deduction will also increase in 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850, an increase from $12,950.



In before financial illiteracy manifests itself.

 

[westwall]

Look at how the middle class gets raped. How nice.

 

[IS_JESS_AN_ACCOUNT]

I love when trailer-dwelling mongoloids offer tax information.

Inflation Adjustments Mean Lower Tax Rates for Some in 2023

Filers whose salaries have not kept pace with inflation could see savings on their federal income tax bills.

www.nytimes.com

Everyone on this branch, other than me is paying at the 12% rate....lol.

 

[Canon Shooter]

Look at how the middle class gets raped. How nice.

A married couple with $800K a year in taxable income, according to this chart, is going to pay about $226,000 in taxes; more than 28% of their income. A married couple with $50K a year in taxable income will pay about $6,250 in taxes, or roughly 12.5%.

Tell me again how the middle class is getting raped.

There's not a single reason in the world not to charge everyone the same percentage...

 

[Gabe Lackmann]

There's not a single reason in the world not to charge everyone the same percentage...

But that would unite all people under a common banner to push for a uniform tax reduction.

Politicians require division to sell their brand of bullshit.

 

[citygator]

The iRS doesn’t have the power to adjust tax ranges or rates nitwit.

They aren’t changing. The article simply states that people are making more so they’ll be in higher tax brackets.

This is the Republican tax bill passed under Trump. The middle class impacts expire in 2025.

 

[westwall]

A married couple with $800K a year in taxable income, according to this chart, is going to pay about $226,000 in taxes; more than 28% of their income. A married couple with $50K a year in taxable income will pay about $6,250 in taxes, or roughly 12.5%.

Tell me again how the middle class is getting raped.

There's not a single reason in the world not to charge everyone the same percentage...

I make enough that no matter how much I pay in taxes I am not going to be hurt by it.

That couple paying 12.5% of their income ....ARE.

 

[Canon Shooter]

I make enough that no matter how much I pay in taxes I am not going to be hurt by it.

That couple paying 12.5% of their income ....ARE.

If we're all paying the same percentage, everyone's hurt the same.

Sure, I make a lot more than someone earning $50K a year, but I also spend much more than they do. I'm putting a lot more than they are back into the economy.

Why should I be punished for that? Because have money and they don't? That's hardly a convincing reason...

 

[westwall]

If we're all paying the same percentage, everyone's hurt the same.

Sure, I make a lot more than someone earning $50K a year, but I also spend much more than they do. I'm putting a lot more than they are back into the economy.

Why should I be punished for that? Because have money and they don't? That's hardly a convincing reason...

Wrong. A couple making 800k a year, unless they are truly exorbitant, won't notice 200k missing from their bank account.

A couple making 50k WILL notice 6,250.

Period, end of story.

I just bought a Maybach. That is four years of that couples entire earnings, without spending a dime.

Shit, I paid almost their hypothetical yearly income on taxes and registration.

So, a 200k hit to me is not a big deal. A 6250.00 hit to them most certainly is.

 

[citygator]

If we're all paying the same percentage, everyone's hurt the same.

Sure, I make a lot more than someone earning $50K a year, but I also spend much more than they do. I'm putting a lot more than they are back into the economy.

Why should I be punished for that? Because have money and they don't? That's hardly a convincing reason...

Everyone does pay the same percentage of taxes on income.

 

[Canon Shooter]

Wrong. A couple making 800k a year, unless they are truly exorbitant, won't notice 200k missing from their bank account.

I'm not wrong.

There's an old adage: The more you earn the more you spend. You can't say, with any degree of certainty, that someone who makes $800K a year "won't notice" $200K from their bank account. That's absurd.

Nor can you dictate what is "exorbitant" for anyone other than yourself. I own a Viking 61' Convertible sport fishing boat. And get this: I don't even like to fish.

Is that "exorbitant" to you? You could certainly get to wherever you need to go, in style, in a nice AMG GT 4-door, but you dropped about $90K more than you needed to to get the Maybach.

Is that "exorbitant"? Well, yeah, for me it is. But I don't know if it is for you, nor is it my place to say whether or not it should be considered exorbitant by you...

A couple making 50k WILL notice 6,250.

A couple making $920K a year would, according to the table above, be on the hook for $412,851.50 in taxes.

You're out of your mind if you believe they "won't notice" over $400K missing from their bank account...

Period, end of story.

I think I've successfully demonstrated the error in your thinking. Rounded off, that $412,851.50 represents, if you round it off, 46% of the couple's income.

There's not a single thing fair about that to anyone...

 

[westwall]

I'm not wrong.

There's an old adage: The more you earn the more you spend. You can't say, with any degree of certainty, that someone who makes $800K a year "won't notice" $200K from their bank account. That's absurd.

Nor can you dictate what is "exorbitant" for anyone other than yourself. I own a Viking 61' Convertible sport fishing boat. And get this: I don't even like to fish.

Is that "exorbitant" to you? You could certainly get to wherever you need to go, in style, in a nice AMG GT 4-door, but you dropped about $90K more than you needed to to get the Maybach.

Is that "exorbitant"? Well, yeah, for me it is. But I don't know if it is for you, nor is it my place to say whether or not it should be considered exorbitant by you...



A couple making $920K a year would, according to the table above, be on the hook for $412,851.50 in taxes.

You're out of your mind if you believe they "won't notice" over $400K missing from their bank account...



I think I've successfully demonstrated the error in your thinking. Rounded off, that $412,851.50 represents, if you round it off, 46% of the couple's income.

There's not a single thing fair about that to anyone...

Why would you buy something that you don't like or use? I bought the Maybach because I like to drive. I would never spend money for something I don't use. To me that is just dumb. On the other hand, if I am going to use something, I will get the best version of it I can get.

Yes, the couple making 800K, won't notice 200k because it won't significantly impact their lifestyle, unless they are living very large. I hang around with billionaires, they spend money at the drop of a hat because they can, someone making 800k will likewise spend money at the drop of a hat because they can, just not as much.

The couple making 50k, doesn't. They must budget, so you ARE wrong.

 

[alang1216]

If we're all paying the same percentage, everyone's hurt the same.

Sure, I make a lot more than someone earning $50K a year, but I also spend much more than they do. I'm putting a lot more than they are back into the economy.

Why should I be punished for that? Because have money and they don't? That's hardly a convincing reason...

Income taxes are progressive but sales tax, gas tax, registration fees, etc., they are not. It is likely that the poor pay a higher percent of their income in taxes than the rich.

 

[Canon Shooter]

Why would you buy something that you don't like or use?

It's a 61' motor yacht. When did I say I didn't use it or I didn't like it? The fact is I use it all the time. I just don't go fishing.

But thank you for showing us a great example of what I'm talking about. You comment as though you know what you're talking about when it comes to other people; as if you have some magic insight into what they should and shouldn't do with their money, and what is and isn't exorbitant.

You don't have a clue what anyone else's situation is, or what they would or wouldn't feel when it comes to their bank account...

I bought the Maybach because I like to drive. I would never spend money for something I don't use. To me that is just dumb. On the other hand, if I am going to use something, I will get the best version of it I can get.

And that's great. Again, I use the boat. Your assumption that I don't isn't only completely wrong, but it's also indicative of how you probably shouldn't try to opine on what will or won't hurt someone in any given tax bracket...

Yes, the couple making 800K, won't notice 200k because it won't significantly impact their lifestyle, unless they are living very large.

And that's their right. They earned a nice living. Why should they be penalized for that?

When I first joined the Navy in 1981, I got stationed in San Diego to go to school. One of the instructors won the California lottery. It was in the neighborhood of 8 or 9 million dollars.

Now, $8 million dollars could easily last someone who's used to living on the paycheck of an Navy E-6 for the better part of his life. But he was broke inside of three years.

Why?

He didn't budget. He didn't plan. Despite having a mountain of money, he had nothing. He was broke before his enlistment was up.

The mere suggestion that wealthy people don't budget is ludicrous...

I hang around with billionaires, they spend money at the drop of a hat because they can, someone making 800k will likewise spend money at the drop of a hat because they can, just not as much.

I hope you're not trying to impress me with who you hang out with...

The couple making 50k, doesn't. They must budget, so you ARE wrong.

Um, I'm pretty well off. I mean, I really pretty well the fuck off.

And I've always budgeted my money. That's how I became really pretty well the fuck off.

Yes, I spend money. Sometimes I spend a lot of money. Making sure those purchases fit within the budget I have is monumentally important, because that's how I stay well off.

See, I'm NOT wrong, and have pretty much demonstrated how you're reasoning is flawed...

 

[westwall]

It's a 61' motor yacht. When did I say I didn't use it or I didn't like it? The fact is I use it all the time. I just don't go fishing.

But thank you for showing us a great example of what I'm talking about. You comment as though you know what you're talking about when it comes to other people; as if you have some magic insight into what they should and shouldn't do with their money, and what is and isn't exorbitant.

You don't have a clue what anyone else's situation is, or what they would or wouldn't feel when it comes to their bank account...



And that's great. Again, I use the boat. Your assumption that I don't isn't only completely wrong, but it's also indicative of how you probably shouldn't try to opine on what will or won't hurt someone in any given tax bracket...



And that's their right. They earned a nice living. Why should they be penalized for that?

When I first joined the Navy in 1981, I got stationed in San Diego to go to school. One of the instructors won the California lottery. It was in the neighborhood of 8 or 9 million dollars.

Now, $8 million dollars could easily last someone who's used to living on the paycheck of an Navy E-6 for the better part of his life. But he was broke inside of three years.

Why?

He didn't budget. He didn't plan. Despite having a mountain of money, he had nothing. He was broke before his enlistment was up.

The mere suggestion that wealthy people don't budget is ludicrous...



I hope you're not trying to impress me with who you hang out with...



Um, I'm pretty well off. I mean, I really pretty well the fuck off.

And I've always budgeted my money. That's how I became really pretty well the fuck off.

Yes, I spend money. Sometimes I spend a lot of money. Making sure those purchases fit within the budget I have is monumentally important, because that's how I stay well off.

See, I'm NOT wrong, and have pretty much demonstrated how you're reasoning is flawed...

You said you had a 61' yacht even though you hated fishing. What was the point of adding that?

You want to try and impress people with how much you spend? You that insecure?

You haven't proved anything. A couple making 50k a year MUST budget. They don't have the option of dropping 200k on a car. They wouldn't even qualify for a loan to buy it. I paid cash because I hate having to keep track of payments and I detest being in debt anyway.

But I COULD buy that car without worrying about how it affects my finances.

So can any couple making 800k.

Personally I think income taxes are retarded. I vastly prefer a sales tax based government system.

It doesn't harm the lower wage earners, and rich people buy expensive things. They can spend more on things if they have no income tax to deal with.

Gets rid of thee for tens of thousands of IRS agents too.

No, I wasn't trying to impress anyone with who I hang out with. I used them as a discussion point.

 

[Canon Shooter]

You said you had a 61' yacht even though you hated fishing. What was the point of adding that?

I used it as a "discussion point".

You want to try and impress people with how much you spend? You that insecure?

Says the chucklehead who just bragged about spending $200K on a car...

You haven't proved anything. A couple making 50k a year MUST budget.

Not budgeting, regardless of how much you earn or how much you have, is an ignorant way to approach life.

They don't have the option of dropping 200k on a car. They wouldn't even qualify for a loan to buy it. I paid cash because I hate having to keep track of payments and I detest being in debt anyway.

Again, there it is. But you're not trying to impress anyone, right?

'Da fuck outta' here with that bullshit...

But I COULD buy that car without worrying about how it affects my finances.

So can any couple making 800k.

I disagree.

I know a lot of wealthy people. How they got their wealth isn't pertinent, but how they keep it is. I don't know a single wealthy person
who doesn't have an accountant or financial advisor (or both) on the payroll to guide their finances. I even know a financial advisor who has a financial advisor who guides his investments, etc.

When I first joined the Navy, I made $5,592 a year. Granted, my food and housing wasn't a concern, but $466 a month doesn't last very long. So, I took advantage of one of the on-base services (through the USO) and learned how to do a budget. Five years later, when I got married, my wife and I again took advantage of that service. When our daughter was born we again took advantage of that. We did the same in 2001 when I retired from the Navy.

Every time our situation changed, we took advantage of the guidance and advice which was available to us for no cost. Accordingly, our savings increased significantly, and we were still able to do the things that we wanted to do.

When I lost my wife to a drunk driver in 2012, I was more than ten years into my retirement from the Navy. My daughter was grown, and the business I started had begun to flounder. I just stopped giving a fuck. A friend and financial advisor got me back on track, both personally and professionally. When I left California at the end of 2012, my financial advisor recommended someone in Florida for me. I've been with that person now for nine years. When I make money he makes money.

And he makes a lot of money.

Sorry to tell you this, but anyone who doesn't have some sort of budget is being foolish...

Personally I think income taxes are retarded. I vastly prefer a sales tax based government system.

I won't disagree with that.

No, I wasn't trying to impress anyone with who I hang out with. I used them as a discussion point.

Right...

 

[westwall]

I used it as a "discussion point".



Says the chucklehead who just bragged about spending $200K on a car...



Not budgeting, regardless of how much you earn or how much you have, is an ignorant way to approach life.



Again, there it is. But you're not trying to impress anyone, right?

'Da fuck outta' here with that bullshit...



I disagree.

I know a lot of wealthy people. How they got their wealth isn't pertinent, but how they keep it is. I don't know a single wealthy person
who doesn't have an accountant or financial advisor (or both) on the payroll to guide their finances. I even know a financial advisor who has a financial advisor who guides his investments, etc.

When I first joined the Navy, I made $5,592 a year. Granted, my food and housing wasn't a concern, but $466 a month doesn't last very long. So, I took advantage of one of the on-base services (through the USO) and learned how to do a budget. Five years later, when I got married, my wife and I again took advantage of that service. When our daughter was born we again took advantage of that. We did the same in 2001 when I retired from the Navy.

Every time our situation changed, we took advantage of the guidance and advice which was available to us for no cost. Accordingly, our savings increased significantly, and we were still able to do the things that we wanted to do.

When I lost my wife to a drunk driver in 2012, I was more than ten years into my retirement from the Navy. My daughter was grown, and the business I started had begun to flounder. I just stopped giving a fuck. A friend and financial advisor got me back on track, both personally and professionally. When I left California at the end of 2012, my financial advisor recommended someone in Florida for me. I've been with that person now for nine years. When I make money he makes money.

And he makes a lot of money.

Sorry to tell you this, but anyone who doesn't have some sort of budget is being foolish...



I won't disagree with that.



Right...

Says the guy who is always showing off his new watch.


DURRRRRR

 

[Canon Shooter]

Says the guy who is always showing off his new watch.


DURRRRRR

Yeah, because that compares.

DURRRRR

 

[westwall]

Yeah, because that compares.

DURRRRR

You strike me as the ultimate wannabe. You post nice watches but they aren't truly expensive. They are expensive if you only make 60k or so, but they aren't truly expensive.

You post your photo creds. Ok, cool. But you are taking pictures of MY car. I pay to go to Amelia, or to the Monterey Classics.

You either don't, or can't because you don't qualify. So you live vicariously. Ok, but own it.

The same with your picture of your boat. Ok, it's a nice boat, but when I go to the Monaco GP I hang out on my friends 200ft yacht.

You post endlessly about your camera equipment. Ok, I have always thought that Cannon was 3rd rate, but if you like it, and you take good pictures with it, cool. I admire people who take good pics. So congrats on being a creative person. They are rare.

But this thread is about the economic impact of taxes on the Middle class. Your posts have actually made my point.

If you are well off, taxes don't hurt much. But if you aren't, they do.

 

[Canon Shooter]

You strike me as the ultimate wannabe. You post nice watches but they aren't truly expensive. They are expensive if you only make 60k or so, but they aren't truly expensive.

I buy what I like. The watches I like don't cost five figures. It really has nothing to do with price and everything to do with design. Could I buy a Patek? Sure I can.

I'd never wear it...

You post your photo creds. Ok, cool. But you are taking pictures of MY car. I pay to go to Amelia, or to the Monterey Classics.

My photo "creds"?

You either don't, or can't because you don't qualify. So you live vicariously. Ok, but own it.

Yeah, I take pictures at the Amelia. I also show at the Amelia. My '69 Charger has been there.

No one bothers with Maybach's at the Concours because Maybach's are relatively boring...

The same with your picture of your boat. Ok, it's a nice boat, but when I go to the Monaco GP I hang out on my friends 200ft yacht.

But not your 200' yacht. You can't, so you live vicariously through your "friends".

You continue to try to impress people with the fact that you know rich people.

Sad, really.

And I actually meant to delete the photo of the boat. I took it out of the body of the post...

You post endlessly about your camera equipment.

When was the last time I posted about my camera equipment?

Ok, I have always thought that Cannon was 3rd rate, but if you like it, and you take good pictures with it, cool.

See, now I know you're clueless. Canon (not "Cannon") is used by many of the world's premiere photographers, just like Nikon and Sony are...

I admire people who take good pics. So congrats on being a creative person. They are rare.

I'll take that compliment...

But this thread is about the economic impact of taxes on the Middle class. Your posts have actually made my point.

And, in a larger sense, what's fair and what isn't, correct?

If you are well off, taxes don't hurt much. But if you aren't, they do.

See, the flaw in your reasoning is that you seem to believe that those making $50K a year don't spend the same percentage of their income as someone making $800K a year. It's not the actual dollar amount they spend that matters, it's the percentage.

Again, I believe it's monumentally foolish for someone with money to not be concerned with a budget...