3 New 2023 IRS Rules that Impact Raleigh Homebuyers and Homeowners

October 20, 2022
Kevin Martini
2023 IRS Inflation Adjustments, Gift Tax Exclusion, Inflation, Logan Martini, Marginal Tax Brackets, Raleigh, Real Estate, Standard Deduction, Tax Benefits

The Internal Revenue Service (IRS) announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions via IR-2022-182 Press Release titled “IRS provides tax inflation adjustments for tax year 2023” (a.k.a. IRS Revenue Procedures 2022-38).

The three provisions that may impact Raleigh homebuyers and homeowners are the ‘Standard Deduction’, ‘Gift Tax Exclusion’ and ‘Marginal Tax Brackets’.

Standard Deduction

For taxable year beginning 2023, the standard deductions changing:

$27,700 is the new 2023 standard deduction for a married couple filing jointly for 2023. This is up from $25,900 in 2022.

The new 2023 standard deduction for heads of households will be $20,800. This is up from $19,400 in 2022.

For single tax payers and married individuals filing separately, the new 2023 standard deduction is $13,850. In 2022 this was $12,950

2023 Standard Deduction	Filing Status
$27,700	Married Individuals Filing Joint Returns and Surviving Spouses
$20,800	Head of Households
$13,850	Unmarried Individuals
$13,850	Married Individuals Filing Separate Returns

information above from IR-2022-182 Press Release

Gift Tax Exclusion

$17,000 will be the annual gift exclusion in 2023. In 2022 it was $16,000.

Marginal Tax Brackets

37%: for incomes greater than $578,125 ($693,750 for married couples filing jointly)
35%: for incomes over $231,250 ($462,500 for married couples filing jointly)
32%: for incomes over $182,100 ($364,200 for married couples filing jointly)
24%: for incomes over $95,375 ($190,750 for married couples filing jointly)
22%: for incomes over $44,725 ($89,450 for married couples filing jointly)
12%: for incomes over $11,000 ($22,000 for married couples filing jointly)
10%: for incomes of $11,000 or less ($22,000 for married couples filing jointly)

Calculate Your After Tax Cost Of Your Raleigh Mortgage

best raleigh after tax benefit of a mortgage best mortgage broker kevin martini 507 n blount st raleigh, nc 27604 — https://www.martinimortgagegroup.com/after-tax-cost-of-your-raleigh-mortgage/

PLEASE NOTE: THIS OVERVIEW IS PROVIDED BY THE MARTINI MORTGAGE GROUP FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS REVENUE PROCEDURE 2022-38.