Individual Tax Guide

Individual Tax Guide: What to know for 2023

Tax planning is crucial for individuals as the 2023 tax season begins. As you approach the new year, various individual tax changes in 2023 must be considered. For instance, changes in tax brackets and standard deductions are essential to know during this tax season.

However, individual taxes are often challenging for individuals not familiar with the process or unaware of the changes occurring. If you’re nervous about tax season, we’re here to help you out. This article provides a comprehensive individual tax guide for 2023, with the changes to look out for and the services that can help make tax season a breeze.

Changes to Tax Brackets

A notable change to individual taxes in 2023 is shifting federal tax brackets, and the IRS is implementing higher federal tax brackets during 2023 to accommodate inflation rates. Whether you are married and filing jointly or single and filing as an individual, marginal tax brackets may differ. Below is a breakdown of the current changes to federal tax brackets for anyone filing jointly or individually.


Marginal Tax Brackets For Married Couples Filing Jointly:

If Taxable Income Is: The Taxes Owed Are:
$22,000 or less 10% of taxable income
$22,001-$89,450 $2,200 plus 12% of the amount over $22,000
$89,451-$190,750 $10,294 plus 22% of the amount over $89,450
$190,751-$364,200 $32,580 plus 24% of the amount over $190,750
$364,201-$462,500 $74,208 plus 32% of the amount over $364,200
$462,501-$693,750 $105,664 plus 35% of the amount over $462,500
$693,751+ $186,601.50 plus 37% of the amount over $693,750


Marginal Tax Brackets for Individuals:

If Taxable Income Is: The Taxes Owed Are:
$11,000 or less 10% of taxable income
$11,001-$44,725 $1,100 plus 12% of the amount over $11,000
$44,726-$95,375 $5,147 plus 22% of the amount over $44,725
$95,376-$182,100 $16,290 plus 24% of the amount over $95,375
$182,101-$231-250 $37,104 plus 32% of the amount over $182,100
$231,251 to $578,125 $52,832 plus 35% of the amount over $231,250
$578,126+ $174,238.25 plus 37% of the amount over $578,125

Changes to Standard Deductions

2023 is also bringing about changes in standard deductions for individual taxes. Workers will receive a higher standard deduction in 2023 than the previous year, meaning that some people may owe less tax in 2023 if their income doesn’t increase by at least 7%. The following changes to standard deductions for different parties include the following:

  • Single people and married couples filing separately: Increases from $12,950 to $13,850
  • For heads of household: Increases from $19,400 to $20,800
  • For married couples filing jointly: Increases from $25,900 to $27,700
  • For individuals over 65: Additional standard deduction increases from $1,400 to $1,500 if married and to $1,850 if single


Additional Tax Provisions

Another change that individuals will notice in their 2023 taxes is various additional tax provisions. The IRS has boosted the figures for numerous provisions, including the alternative minimum tax. Additionally, the IRS has increased the earned income tax credit. Currently, it’s estimated that limits for 401(k) files in 2023 and individual retirement accounts will reach $6,500 for individual savers under 50.

Tax Planning

While navigating personal tax changes is often overwhelming, individuals can combat some of this stress through tax planning. Working with experts when devising a plan for your tax year can significantly impact how well you adapt to the newest adjustments to individual taxes.

By implementing tax planning techniques and enlisting the help of professional services like a certified public accountant, you can achieve some of the following:

  • Reduce potential tax liabilities in future years
  • Maximize your tax savings from your allowable deductions
  • Secure and maximize your family’s wealth
  • Reduce your tax liability for the current year
  • Defer your tax liability for the current year to future years
  • Minimize the impact of the AMT on 2023 tax liability
  • Take advantage of available tax credits to help maximize your savings
  • Avoid any penalties for underpaying taxes
  • Manage cash flow through accurate predictions of when tax payments will be required from you
  • Boost the number of funds you will have in the future to fund your retirement or other investments


What is a Certified Public Accountant?

Individuals uncertain about the current tax changes will benefit from hiring a professional, certified public accountant (CPA). A CPA will help you navigate tax changes now and in upcoming years to ensure you meet all IRS compliance requirements.

A CPA is a licensed accountant who helps individuals and businesses organize, plan, and achieve their financial goals now and in the future. A certified public accountant can help individuals thrive in their financial lives in numerous ways, including the following:

  • Aiding individuals with financial analysis
  • Equipping individuals with tax planning skills
  • Ensuring that you follow accounting procedures to comply with IRS standards
  • Breaking down your financial statements to make adjustments if necessary
  • Providing guidance on your tax payments throughout the year
  • Helping to submit your taxes and all paperwork to the IRS
  • Helping you prepare for your financial future


How Dempsey Vantrease & Follis Can Help

Working with a professional certified public accountant is essential for many individuals hoping to stay up-to-date on all tax changes in 2023 and beyond. Suppose you need more certainty about complying with the newest personal tax changes or want expert guidance on your taxes and growing your finances. In that case, the certified public accountants at Dempsey Vantrease & Follis can help.

Dempsey Vantrease & Follis goes beyond essential tax preparation and works with individuals and businesses to develop effective tax plans. The experts at Dempsey Vantrease & Follis provide the following:

  • Individual tax preparation and planning
  • Estate, trust, and gift tax preparation and planning
  • Individual tax preparation
  • Year-end tax planning
  • Qualified retirement plan (ERISA) tax preparation
  • And more for individuals and businesses!


No matter what you need during this upcoming tax season, Dempsey Vantrease & Follis can help you thrive while remaining IRS-compliant. Contact us today to find the best solution and guidance for understanding your taxes in 2023.