Retirement, Investments, & Insurance for Individuals Build your knowledge 8 things to remember when you file your 2023 taxes

8 things to remember when you file your 2023 taxes

Tax brackets and exemption limits often change from year to year. Check these eight planning to-dos when you file your taxes.

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7 min read |

It’s never too early for a head start on prep for filing your 2023 taxes. Use these eight tips to get the most out of your earnings with insights about what’s new, what’s changed, and what you may still be able to do to save on your taxes.

1. Review the 2023 federal tax brackets.

Changes in your salary may affect the overall federal tax rate you pay.

Income tax rates Single Married filing jointly
10% $0 to $11,000 $0 to $22,000
12% $11,001 to $44,724 $22,001 to $89,449
22% $44,725 to $95,374 $89,450 to $190,749
24% $95,375 to $182,099 $190,750 to $364,199
32% $182,100 to $231,249 $364,200 to $462,499
35% $231,250 to $578,124 $462,500 to $693,749
37% $578,125+ $693,750+

2. Check your 2023 standard tax deductions.

Standard deductions replaced personal exemptions, and the amounts have increased from 2022.

  • Single taxpayers and married individuals filing separately: $13,850
  • Married, filing jointly: $27,700
  • Heads of households: $20,800

Learn more about credits and deductions for individuals.

3. Claim child tax credits if you can.

This is applicable for dependents under the age of 17 who meet eligibility requirements. Learn more about child tax credits.

4. Understand your state and local tax deduction limitations.

If you itemize deductions, you can take a $10,000 maximum deduction—$5,000 if married filing separately—on any combination of state and local income, real estate, and personal property taxes. Alternatively, you may elect to substitute state and local sales taxes for income taxes, but you can’t use both.

Do you need to change your withholdings?

If you’ve had a big life event such as a new job, marriage, or baby, or face a big tax bill every April, you may want to reevaluate your withholdings, which can impact your tax refund or taxes due. You can do this at any time; contact your human resources department for details.

5. Review the mortgage interest deduction limit.

You may deduct up to $750,000 ($375,000 if married filing separately) if you take out a new loan for a first or second home between December 15, 2017, and December 31, 2025. Interest from home equity loans is no longer deductible, regardless of when you took out the loan.

6. Evaluate the tax exclusion for the sale of a primary home.

If you decide to sell your primary residence, and you’ve lived there for two of the last five years, single filers can still exclude up to $250,000 (married couples up to $500,000) from capital gains taxes. (This is a tax levied on profits you make when you sell for a price higher than what you originally paid, plus the cost of upgrades other than simple maintenance and repairs. )

7. Adjust based on your alternative minimum tax (AMT).

The AMT basically sets a bottom percentage that very high income earners must pay. (Your tax professional can offer more insight.) It only starts after taxpayers reach certain income levels; those are $81,300 for single or head of household filers and $126,500 for married filing jointly or widow(er)s.

8. Include any estate tax exemptions.

In 2023, the amount of money exempt from the estate tax increased to just over $12.92 million. Since only 0.2% of all estates are large enough to be assessed estate taxes, this only applies to a small number of people.

What’s next?

Increasing your retirement contributions helps to lower your taxable income. Ready to get started? Log in to your account and adjust your contributions.