Newly announced income tax brackets will not be applied to the 2023 tax returns, the IRS says.
2023 Tax Returns Announcement
The Internal Revenue Service (IRS) adjusts federal income tax brackets every year to account for inflation. However, the new federal income tax brackets announced by the IRS do not apply to taxpayers’ 2023 tax returns. The adjustments are not for the 2023 tax returns but for tax year 2024, and those returns will be filed in 2025.
The IRS announced the federal income tax brackets for the tax year 2023 in October 2022a and recently added that such adjustment will not be applied to the 2023 tax returns. The adjustments, which will not be applied to the 2023 tax returns, aim to prevent “bracket creep,” where inflation pushes people into higher income tax brackets or reduces the value they receive from credits and deductions.
According to a published article by WGRZ, in addition to the income tax brackets, the standard deduction and maximum Earned Income Tax Credit (EITC) will also be adjusted for tax year 2024.
Recently Announced Tax Brackets For 2023 And 2024
In a published article by Forbes, the IRS has released the tax brackets for the 2023 and 2024 tax years. The income tax rates will remain the same for both years, but the tax brackets will change.
The tax brackets determine the amount of income taxed at different rates. For 2023, the tax brackets include 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The same tax brackets will apply for 2024.
READ ALSO: IRS Announcement Today: Adjustment Of Tax Brackets Based On Consumer Price Index