IRS releases new federal tax brackets and standard deductions Here' s how they affect your family' s tax bill Article_Normal HEAD TOPICS

IRS releases new federal tax brackets and standard deductions Here' s how they affect your family' s tax bill

10/23/2022 1:45:00 AM

Inflation has already prompted an 8 7% increase in next year' s Social Security payments

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IRS just released new federal tax brackets and standard deductions. Here's what they mean for your family's tax bill. AndrewKeshner Inflation has already prompted an 8.7% increase in next year's Social Security payments. “When inflation is persistently clinging to four-decade highs, these annual adjustments of approximately 7% for the standard deduction carry extra significance.”For married couples filing jointly, the payout climbs to $27,700 for the 2023 tax year. That’s a $1,800 increase from the $25,900 standard deduction set for the upcoming tax year. The IRS arrives at its inflation adjustments by averaging a slightly different inflation gauge, the so-called “chained Consumer Price Index” instead of the widely-watched Consumer Price Index, Durante noted. That’s an outcome of the Trump-era Tax Cuts and Jobs Act of 2017, he added. Read more:
MarketWatch » No, you don’t have to activate or pay for the Social Security increase Social Security Administration to allow Americans to choose their gender identity on records Social Security makes it easier to change sex marker in records Social Security Administration makes it easier to change sex marker in records

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Read more >> AndrewKeshner Everything is actually 100% to 150% higher than when Biden took office. So that is the amount they should raise the brackets. No, you don’t have to activate or pay for the Social Security increaseSocial Security payments are going up, and with that comes an increase in calls, emails and texts from imposters trying to trick people out of information or money, the U.S. government warns. Social Security Administration to allow Americans to choose their gender identity on recordsThe agency said people would be allowed to select a sex that best aligns with their gender identity to be more inclusive of transgender Americans. Clown World Social Security makes it easier to change sex marker in recordsThe Social Security Administration (SSA) said it will now allow people to change the sex marker on their Social Security number record without providing documentation of their sex designation. The change went into effect immediately. More Democrat policies ... More fraud Awful Social Security Administration makes it easier to change sex marker in recordsThe Social Security Administration said it will now allow people to change the sex marker on their Social Security number record without providing documentation of their sex designation. Ridiculous and dangerous World has gone insane. And, since, actuarially, women live longer, such a switch can lead to increased benefits. To Save Social Security and Medicare, Democrats Urged to Head Off GOP Debt Limit Ploy\u0022Not doing so would be massive political malpractice by Schumer and Pelosi,\u0022 said one progressive strategist. I'm guessing they don't have the votes. Remember Manchin and Sinema? Repeal the 2017 tax cuts for corporations and the rich! Both parties are NOT the same. Democrats have passed legislation that helps people. POTUS has made EOs and rules that help people. GOP is closing the window on democracy. The whole system is problematic, but allowing GOP to gain control is a nightmare scenario. Social Security Administration to allow choosing of gender identity on recordsThe agency says it is trying to be more inclusive for nonbinary and transgender people. It should also make it easier for transgender people to access government services. America’s high inflation rate will produce a 7% increase in the size of the standard deduction when workers file their taxes on their 2023 income, according to new inflation adjustments from the Internal Revenue Service.SAN ANTONIO – Social Security payments are going up, and with that comes an increase in calls from scammers, the U.The Social Security Administration (SSA) says the agency will now allow people to select a sex that aligns with their gender identity and expression on official records.it will now allow people to change the sex marker on their Social Security number record without providing documentation of their sex designation. It’s also going to pump up tax brackets by 7% as well, according to the annual inflation adjustments the IRS announced this week. Many tax code provisions — but not all — are indexed for inflation, so the announcements are a recurring event. government warns. But when inflation is persistently clinging to four-decade highs, these annual adjustments carry extra significance. Any individual who wishes to update their gender on official records with SSA will have to apply for a new card to replace any previous one. “When inflation is persistently clinging to four-decade highs, these annual adjustments of approximately 7% for the standard deduction carry extra significance. What you need to know about this scam The warning states, “that unexpected offer from the SSA to activate a benefit increase is not the real SSA.” Start with the standard deduction, which is what most people use instead of itemizing deductions.S. The standard deduction for individuals and married people filing separately will be $13,850 for the 2023 tax year. “Confusion is their friend,” said Zulfikar Ramzan, cybersecurity scientist and CEO of Aura Labs. SSA says the agency will accept an applicant's self-identified sex designation of male or female,"even if it is different from the sex designation shown on identity documents, such as a passport or state-issued driver’s license or identity card. That’s a $900 increase from the $12,950 standard deduction for the upcoming tax season. For married couples filing jointly, the payout climbs to $27,700 for the 2023 tax year. “Scammers are going to come out of the woodwork, telling people they can help them get their increase faster or tell them they need to re-enroll or even threaten that their benefits will be cut off entirely,” Ramzan said. That’s a $1,800 increase from the $25,900 standard deduction set for the upcoming tax year. have debated whether to allow an"X" option on official documents like birth certificates. The increases in the marginal tax rates reflect the same 7% rise. The truth is the Social Security Administration will mail notices in December to recipients. While the SSA is currently only allowing for the sex designation to be changed to either male or female, the agency is "exploring possible future policy and systems updates to support an 'X' sex designation for the SSN card application process. For example, the 22% tax bracket for this year is over $41,775 for single filers and over $83,550 for married couples filing jointly. Next year, the same 22% bracket applies to incomes over $44,725 and over $89,450 for married couples filing jointly. Recipients don’t have to do a thing.. “The changes seem to be much larger than previous years because inflation is running much higher than it has in previous decades,” said Alex Durante, economist at the Tax Foundation, a right-leaning tax think tank. The IRS arrives at its inflation adjustments by averaging a slightly different inflation gauge, the so-called “chained Consumer Price Index” instead of the widely-watched Consumer Price Index, Durante noted. Fraudsters may also attempt to get people to click on a link or pay for a bigger or earlier increase. That’s an outcome of the Trump-era Tax Cuts and Jobs Act of 2017, he added. Story continues The removal of barriers for sex marker changes on official government records comes during a contentious political and social climate for transgender and gender non-conforming Americans. “The reason they do this is because the regular CPI is thought to overstate inflation because it doesn’t take into account the substitution that shoppers can make as cost rise,” Durante said. They threaten imminent arrest if requests or demands are not met. Shoppers substitute when they swap a more expensive item for cheaper one, and research shows many Americans are using the tactic. The IRS inflation adjustments come after September CPI data last week showed inflation of 8. Those accounted for nearly $150 million in losses.2% year-over-year, slightly off from 8.3% in August. Tips to help you spot the scam Fraud experts say to be skeptical when you are unexpectedly contacted by someone claiming to be the government. Also last week, the Social Security Administration said next year’s payments would include an 8.7% cost of living adjustment. Don’t trust the Caller ID. “The payout on the earned income tax credit — geared at low- and moderate-income working families who have been hit hard by red-hot inflation — is also increasing. ” The payout on the earned income tax credit is also increasing. Don’t take immediate action. The maximum payout for a qualifying taxpayer with at least three qualifying children climbs to $7,430, up from $6,935 for this tax year. The longstanding credit is geared at low- and moderate-income working families who have been hit hard by red-hot inflation. Copyright 2022 by KSAT - All rights reserved. More than 60 provisions are slated for an increase inline with inflation, but many portions of the tax code are not indexed for inflation. Depending on the circumstances, the taxes or the tax breaks kick in sooner. Since coming to KSAT in 1985, she’s covered everything from crime to politics, winning awards for her coverage of the Mexican Mafia, Oklahoma tornadoes, children’s transplants, an investigation into voting irregularities and even a hit-and-run Santa Claus. Capital gains tax rules one example. The IRS lets a taxpayer use capital losses to offset capital gains taxes. If losses exceed gains, the IRS allows a taxpayer to deduct up to $3,000 in excess loses. They can then carry the remainder of the capital loses to future tax years. It’s been more than four decades since lawmakers last set the limit, according to Durante. “While more than 60 provisions are slated for an increase inline with inflation, many portions of the tax code are not indexed for inflation. They include capital gains tax. ” Given the stock market’s rocky downward slide this year, many investors might welcome a fast-approaching tax break — even if it only enables a $3,000 deduction. At the same time, a married couple selling their home can exclude the first $500,000 of the sale from capital gains taxation, and it’s $250,000 for a single filer. It’s been that way since the exclusion’s 1997 establishment. The once white-hot housing market may be cooling, but many sellers may still be facing the point when taxes kick in. The median home listing was over $367,000 as of early October, according to Redfin RDFN, +2. 29%. The child tax credit is another example. After the payout to parents last year jumped to $3,600 for children under age 6 and $3,000 per child age 6 to 17, it’s back to a maximum $2,000. The credit’s refundable portion climbs from $1,500 to $1,600 during tax year 2023, the IRS notes. Proponents of the boosted payouts and some Congressional Democrats want to revive the larger payments in negotiations tied to corporate taxes. The high costs of living are a strong reason to bring back the boosted credit, they say. Related: What smart strategies can lower your tax bill as year-end approaches? Read this before making any tax moves. Three things the best 401(k)s offer that can help you save a lot more Enhanced child tax credit helped reduce poverty for families before it ended last year. But there’s one way Republicans and Democrats could agree on reinstating it. .