Broker Check

Tax Season 2023

February 08, 2023

A new year means new tax changes. While Congress didn’t pass any major tax reform last year, there are still updated tax provisions that could affect how much money you keep and how much goes to Uncle Sam. That’s because Congress did pass the Inflation Reduction Act and SECURE 2.0 Act. Both bills contain tax implications, even if that wasn’t their primary focus. I’ve included some of the most significant changes for investors and retirees. My suggestion: Look over the material below and circle anything you have questions about. Then, feel free to share this letter with your tax professional! He or she should be able to answer any questions you have.

As you know, tax season is now upon us. To help reduce the stress of tax season, feel free to have your accountant or tax preparer contact us directly for any needed investment information. We are always happy to coordinate with other professionals you work with to minimize your workload. As always, if there’s anything Tina or I can do to be of assistance, please let us know. Have a great month!

Tax-Related Updates for 2023

 Changes to the Filing Deadline

One thing to note before we get into the nitty-gritty: This year’s filing date is April 18 instead of the usual April 15.1 Technically, this isn’t an actual change, as we saw the same date in 2022. But since April 15 is on a Saturday – and because April 17 is a holiday in Washington, D.C. – taxpayers will again get a few extra days to file. (Remember, though, that filing as early as you can is almost always better than filing last minute. That’s because it eliminates the stress of procrastination. Plus, you may get any tax refund back sooner!). Keep in mind it takes time to gather all the tax information from your various holdings. We will have your tax documents to you as soon as possible. If you have any questions about that, please let us know. 

Changes to Federal Tax Brackets2

As it often does, the IRS has adjusted the 2022 tax brackets based on inflation. These adjustments are even greater than usual this year, thanks to the historic inflation we’ve seen lately. That’s good news for those whose wages have increased to keep pace with the rise in prices because it means you can earn more before getting bumped to a higher bracket. And some people may even find themselves dropping down a level, even if their pay stays the same. 

The new brackets are as follows: 

Tax Rate


Married, filing jointly

Head of Household 


0 to $11,000

0 to $22,000 

0 to $14,650


$11,001 to $44,725 

$22,001 to $89,450

$14,651 to $55,900 


$44,726 to $95,375 

$89,451 to $190,750

$55,901 to $89,050  


$95,376 to $182,100

$190,751 to $364,200 

$89,051 to $170,050


$182,101 to $231,250 

$364,201 to $462,500

$170,051 to $215,950


$231,251 to $578,125 

$462,501 to $693,750 

$215,951 to $539,900  


$578,126 and up 

$693,751 and up

$539,901 and up 

Changes to Capital Gains3

The income threshold for long-term capital gains rates has also gone up due to inflation.  

Tax Rate


Married, filing jointly

Head of Household 


0 to $44,625 

0 to $89,250 

0 to $55,800  


$44,626 to $492,300 

$89,251 to $553,850 

$55,801 to $488,500  


$492,301 and up 

$553,851 and up 

$488,501 and up

Changes to Deductions2

As you know, when you file your taxes, you can either claim a standard deduction or dive into the details and itemize your deductions. (Since the passing of the Tax Cuts and Jobs Act back in 2017, most people have chosen the former.) Per the IRS, the standard deduction is “a specific dollar amount that reduces the amount of income on which you’ve been taxed.”4 The IRS has increased the standard deduction for your 2022 taxes. For singles, the standard deduction is now $13,850, up from $12,950. For married couples filing jointly, it is $27,700, up from $25,900. For heads of households, the standard deduction is $20,800, up from $19,400.2 Remember, you can’t take the standard deduction if you also itemize deductions. And for married couples filing separately, both spouses must take the same type of deduction. So, if one spouse chooses to itemize, the other spouse must as well. 

Child Tax Credit2

The Child Tax Credit (CTC) is returning to pre-pandemic levels this year. That means taxpayers who claim this type of credit will receive a smaller refund. Parents who received $3,600 per dependent for 2021 will now get $2,000 for 2022. That’s a reduction of $1,600.  

Changes to Alternative Minimum Tax (AMT) Exemption Levels2

Due to the Tax Cuts and Jobs Act, the number of Americans who owe the AMT has been drastically reduced. But in case you fall under this category, the exemption levels for 2022 are as follows:  


Married, filing jointly

0 to $81,300 

0 to $126,500  

These exemption levels begin to phase out at $578,150 for single individuals and $1,156,300 and $1,505,600 for married couples filing jointly. 


I hope you found the information in this letter helpful. Obviously, it’s not an exhaustive list of every tax change for the year. But it is an overview of some of the most important ones. If you have any questions or concerns, please let Tina and me know. Our door is always open!


1 “IRS sets January 23 as official start to 2023 tax filing season,” Internal Revenue Service, 

2 “IRS provides tax inflation adjustments for tax year 2023,” Internal Revenue Service, 

3 “5 tax and investment changes that could boost your finances in 2023,” CNBC, 

4 “Standard Deduction,” Internal Revenue Service,