January 2023
2023 Key Financial Data
By: Aaron Adkins, CFP® ChFC CLU, Investment Communications Strategist
Key Takeaways
2023 TAX RATE SCHEDULE
STANDARD DEDUCTIONS & CHILD TAX CREDIT
TAX RATES ON LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
3.8% TAX ON LESSER OF NET INVESTMENT INCOME OR EXCESS OF MAGI OVER
EXEMPTION AMOUNTS FOR ALTERNATIVE MINIMUM TAX
GIFT AND ESTATE TAX EXCLUSIONS AND CREDITS
EDUCATION CREDITS, DEDUCTIONS, AND DISTRIBUTIONS
TAX DEADLINES
RETIREMENT PLAN CONTRIBUTION LIMITS
INDIVIDUAL RETIREMENT ACCOUNTS
HEALTH SAVINGS ACCOUNTS
DEDUCTIBILITY OF LONG-TERM CARE PREMIUMS ON QUALIFIED POLICIES
MEDICARE DEDUCTIBLES
SOCIAL SECURITY
MEDICARE PREMIUMS
UNIFORM LIFETIME TABLE (PARTIAL)
2023 TAX RATE SCHEDULE
STANDARD DEDUCTIONS & CHILD TAX CREDIT
* Greater of $1,250 or $400 plus the individual’s earned income.
TAX RATES ON LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
3.8% TAX ON LESSER OF NET INVESTMENT INCOME OR EXCESS OF MAGI OVER
EXEMPTION AMOUNTS FOR ALTERNATIVE MINIMUM TAX**
** Indexed for inflation and scheduled to sunset at the end of 2025.
GIFT AND ESTATE TAX EXCLUSIONS AND CREDITS
EDUCATION CREDITS, DEDUCTIONS, AND DISTRIBUTIONS
† $10,000 lifetime 529 distribution can be applied to student loan debt.
TAX DEADLINES
RETIREMENT PLAN CONTRIBUTION LIMITS
INDIVIDUAL RETIREMENT ACCOUNTS
HEALTH SAVINGS ACCOUNTS
DEDUCTIBILITY OF LONG-TERM CARE PREMIUMS ON QUALIFIED POLICIES
MEDICARE DEDUCTIBLES
SOCIAL SECURITY
Provisional income = adjusted gross income (not incl. Social Security) +
tax-exempt interest + 50% of Social Security benefit
MEDICARE PREMIUMS
UNIFORM LIFETIME TABLE (PARTIAL)
FOR REQUIRED MINIMUM DISTRIBUTION CALCULATION
Information contained herein is current as of 10/18/22. It is subject to legislative changes and is not intended to be legal or tax advice. Consult a qualified tax advisor regarding specific circumstances. This material is furnished “as is” without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties expressed or implied are hereby excluded.