WASHINGTON — Taxpayers will get an adjustment to their standard deductions for 2023 and all seven federal income tax bracket levels will be revised upward as the government attempts to compensate for the skyrocketing inflation.
For couples who file jointly for tax year 2023, the standard deduction increases to $27,700 up $1,800 from tax year 2022, the IRS announced. Single taxpayers and married people filing separately will see their the standard deduction rise to $13,850, up $900, and for heads of households, the standard deduction will be $20,800, up $1,400.
The adjustments come as inflation jumped again in September, up a whopping 8.2% for the past 12 months.
Last week, the Social Security Administration announced a 8.7% cost of living adjustment increase for benefits recipients beginning in January 2023. The extra $140 will not match the additional expenses facing Americans today.
