IRS Changed Its Tax Brackets for 2023. Here’s What It Means for Your Taxes.

Aimee Picchi | MoneyWatch

February 13, 2023

Americans could save on taxes this year because of historically large inflation adjustments set by the IRS.

The agency adjusted many of its 2023 tax rules to help taxpayers avoid “bracket creep.” Workers get pushed into higher tax brackets due to the impact of cost-of-living adjustments to offset inflation, despite their standard of living not having changed. On average, the IRS pushed up each provision by about 7% for 2023.

The changes could mean tax savings for some taxpayers, providing relief when Americans still struggle with high inflation eating away their purchasing power. For instance, some taxpayers could fall into lower tax brackets due to the changes, while those who use the standard deduction — relied on by 86% of taxpayers — can deduct more of their income from taxation…READ MORE