As we approach the end of the year, some are already looking ahead to 2023 and the upcoming US tax season. Most of the tax relief measures of the pandemic period have now ended and we are back to normal when it comes to paying taxes.
however not everyone is required to file a return with the IRS and low-income people do not have to pay taxes. If your total income is less than the amount of the standard deduction, you do not have to declare tax.
The term ‘standard deduction’ is the lower income limit that you don’t have to pay tax on your income. This means that you can reduce your tax bill, or you can be exempt from income tax entirely.
For 2023, the IRS has significantly raised the standard deduction threshold, meaning more people won’t have to pay federal taxes:
– Single; or Married and filing separately – $13,850
– Joint marriage and surviving spouse – $27,700
– Head of household – $20,800
If your income is below these thresholds, you will not have to file a tax return in 2023. However, there are federal financial aid programs that require you to do so in order to claim support.
What is the additional standard deduction?
Some earners are eligible for the standard deduction, which means they can reduce their tax liability or avoid federal taxes entirely. If you registered as blind or 65 years of age or olderyou can claim the additional standard deduction.
This amount is added to the standard deduction to increase the amount for eligible taxpayers:
Resignation of Marriage or Divorce
– Whether 65 years or older or blind – $1,500
– Both are 65 years of age or older and are blind – $3,000
Single or Head of Family
– Whether 65 years or older or blind – $1,850
– Both are 65 years of age or older and are blind – $3,700
For more information on how to calculate the standard deduction for 2023, visit the IRS advance guidance help page.