2022 Tax Facts

  1. For 2023, the standard deduction is $13,850 for single individuals and to $27,200 for married couples. You'll benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include medical expenses (over 7.5% of AGI), state, local, sales and real estate taxes (up to $10K), mortgage interest, charitable contributions and investment interest expense.
  2. For 2023, the personal exemption is $0.
  3. The maximum earnings subject to social security taxes for 2023 is $160,200.
  4. The standard mileage rate is $0.655 per business mile for 2023.
  5. The maximum annual contribution into a 401(k) plan or a 403(b) plan is $22,500 for 2023. And if you’re 50 or older by December 31, 2023, you can contribute an extra $7,500 into your 401(k) or 403(b) account this year through salary deferrals.
  6. The maximum contribution into an IRA is $6,500 per individual for 2023. And if you’re 50 or older, you can contribute an extra $1,000 for 2023. You have until April 15, 2024 to contribute to your IRA for 2023.