Publication 590-A 2023: Your Guide to the TCJA's New Tax Laws

The Tax Cuts & Jobs Act (TCJA) of 2017 made significant changes to the tax code. These changes can impact your taxes for the 2023 tax year.

Standard Deduction and Personal Exemption

• The standard deduction for 2023 is $13,850 for single filers, $20,800 for married filing jointly, $10,950 for married filing separately, and $20,800 for heads of household.
• The personal exemption was eliminated by the TCJA.

Tax Brackets

The TCJA changed the tax brackets for 2023. The new tax brackets are:
- 10%: $10,275-$41,775 for single filers, $20,550-$83,550 for married filing jointly, $10,275-$41,775 for married filing separately, and $20,550-$53,900 for heads of household.
- 12%: $41,775-$89,075 for single filers, $83,550-$178,150 for married filing jointly, $41,775-$89,075 for married filing separately, and $53,900-$144,400 for heads of household.
- 22%: $89,075-$170,050 for single filers, $178,150-$340,100 for married filing jointly, $89,075-$170,050 for married filing separately, and $144,400-$214,300 for heads of household.
- 24%: $170,050-$215,950 for single filers, $340,100-$431,900 for married filing jointly, $170,050-$215,950 for married filing separately, and $214,300-$405,250 for heads of household.
- 32%: $215,950-$539,900 for single filers, $431,900-$647,850 for married filing jointly, $215,950-$539,900 for married filing separately, $405,250-$622,050 for heads of household.
- 35%: $539,900-$1,077,350 for single filers, $647,850-$1,295,700 for married filing jointly, $539,900-$1,077,350 for married filing separately, and $622,050-$1,244,100 for heads of household.
- 37%: $1,077,350-$1,250,000 for single filers, $1,295,700-$2,500,000 for married filing jointly, $1,077,350-$1,250,000 for married filing separately, and $1,244,100-$2,488,200 for heads of household.
- 39.6%: $1,250,000+ for single filers, $2,500,000+ for married filing jointly, $1,250,000+ for married filing separately, and $2,488,200+ for heads of household.

Child Tax Credit

The child tax credit for 2023 is $2,000 per qualifying child. The credit is phased out for higher-income taxpayers.

Earned Income Tax Credit

The earned income tax credit (EITC) is a tax credit for low-to-moderate income working individuals and families. The amount of the EITC varies depending on your income and family size.

Itemized Deductions

• The TCJA eliminated the personal and dependent exemptions.
• The TCJA capped the state and local tax (SALT) deduction at $10,000.
• The TCJA eliminated the deduction for moving expenses, except for members of the military.

Other Changes

The TCJA also made changes to the following:

• The alternative minimum tax (AMT)
• The estate tax
• The gift tax
• The generation-skipping transfer tax

How to Get Help

If you need help with your taxes, you can:
- Use the IRS website
- Call the IRS at 1-800-829-1040
- Visit an IRS office
- Hire a tax professional

Conclusion

The TCJA made significant changes to the tax code. It's important to understand how these changes may impact your taxes for the 2023 tax year.