2. Tax brackets and standard deductions are more favorable and will increase
This change raises the threshold at which the standard deduction begins in 2023. For married couples who file jointly in 2023, the basic deduction climbs to $27,700, which is higher by $1,800 compared to the previous year.
People who have a spouse and file jointly are not the only ones who are lucky, though. The new filing threshold for individuals will increase by $900, which brings the total to $13,850.
Increasing from $10,275 and $20,550 in 2022, the first $11,000 of taxable income for single filers and the first $22,000 for joint filers will be subject to the 10% federal income tax rate.
Heads of households will notice that the normal deduction for them will be higher by $1,400, meaning a total of $20,800.
Thank heaven for SS!