MEDIA ALERT — 2023 Projections for Inflation-Adjusted Tax Brackets and Other Amounts

Rhea-AI Summary

Wolters Kluwer Tax & Accounting has analyzed the latest Consumer Price Index data to project 2023 inflation adjustments for various tax amounts. These adjustments, linked to CPI figures released in mid-September, will aid in year-end tax planning for taxpayers and advisors. Due to rising inflation in 2022, the projected adjustments are expected to be more significant than in previous years. Key projections include updates to tax rate tables, capital gains rates, standard deduction, and estate tax credits.

Positive

• Projected inflation adjustments may lead to larger tax amounts due to increased inflation in 2022, assisting taxpayers in planning.
• The analysis provides an early insight into 2023 tax-related figures, aiding in strategic tax planning.

Negative

• None.

Wolters Kluwer Tax & Accounting looks at the recently released Consumer Price Index Percentages to Project 2023 Inflation Adjustments for Certain Tax Amounts

What: Many of the amounts in the Internal Revenue Code are subject to annual inflation adjustments. Many of these adjustments are tied to Consumer Price Index numbers released in mid-September. Wolters Kluwer utilizes these CPI numbers to project the 2023 adjustments to the Tax Code amounts tied to these CPI numbers. The IRS typically will issue the official 2023 adjustments in November 2022.

Full report: 2023 Projection for Inflation-Adjusted Tax Brackets and Other Amounts

Why: The projections provide taxpayers and tax advisors with a first look at what these 2023 tax numbers might look like to assist in 2022 year-end tax planning. With 2022 inflation being higher than in recent years, the projected changes in tax amounts are also larger than has been the case in recent years. This link contains the details:

Some of the 2023 tax amount projections include:

• Tax Rate Tables
• Capital Gains Rate Table
• Standard Deduction Table
• Estate and Gift Tax Unified Credit and Annual Gift Tax Exclusion
• Adoption Credit
• Alternative Minimum Tax
• Flexible Spending Account Limit
• Foreign Earned Income Exclusion

Who: Tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst, for Wolters Kluwer Tax & Accounting, can help discuss these projected inflation adjustments for 2023 and their implications for tax planning.

PLEASE NOTE: These materials are designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering tax advice or accounting, legal, tax or other professional service.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220921005484/en/

To arrange an interview with Mark Luscombe or other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or any other tax-related topics, please contact:



KELLY DE CASTRO

614-288-5640

Kelly.deCastro@wolterskluwer.com

Source: Wolters Kluwer

FAQ

What are the 2023 inflation adjustments projected by Wolters Kluwer Tax & Accounting?

Wolters Kluwer's projections include adjustments for tax rate tables, capital gains rates, standard deduction, and estate tax credits, reflecting higher inflation.

When will the IRS issue the official 2023 tax adjustments?

The IRS is expected to release the official 2023 adjustments in November 2022.

Who is the tax expert discussing the 2023 projections?

Mark Luscombe, JD, LL.M, CPA, is the Principal Federal Tax Analyst at Wolters Kluwer Tax & Accounting.

How does the Consumer Price Index affect tax planning for 2023?

The Consumer Price Index helps determine inflation adjustments for tax amounts, which are critical for effective year-end tax planning.

What implications do the projected changes have for tax advisors and taxpayers?

The projected changes offer taxpayers and advisors an early view of tax figures, facilitating better planning in light of increased inflation.