It’s a new year and a good time to take a look at your taxes.
The IRS announced annual inflation adjustments for 2023. So what does that mean for you? There are more than 60 tax provisions, changes to capital gains tax rates, annual exclusion for gifts, estate tax exclusion, and more. Download a copy of the 2023 Quick tax reference*.
As part of your financial plan, this should be something you talk about with your financial advisor annually. There were several changes in contribution limits for IRA’s/ROTH IRA’s/Retirement Plans (401k/403b) that may be advantageous for individuals. You may be looking at ways to reduce taxable income for the year or just wondering how much to withhold from your paycheck.
Another noteworthy item people should review is how much of much of your wages are taxed with social security. The maximum earnings subject to social security payroll tax increased by nearly 9%. RMD’s are being pushed back for another round of people to age 75 starting January 1, 2033. This could be a very good benefit for those who do not need additional taxable income.
The Secure Act 2.0 was just released December 29, 2022 so there may be things that you or your financial advisor can take advantage of that were not previously available.
Have questions about the new rules? Let’s schedule a time to talk.
*This material is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax professional before modifying your tax strategy.