NEW 2023 TAX BRACKETS ANNOUNCED (REFUND Amounts by Income Level)
In this video we are going to go over the new inflation adjusted tax brackets for 2023. I am going to tell you everything you need to know and how the new 2023 tax brackets affect you. This could mean a big chunk of change out of your refund if you don’t pay attention.
First we need to compare the tax brackets in 2022 vs 2023 and what caused it to happen. Over the pandemic, the federal reserve printed money, trillio9ns of dollars which caused inflation and subsequently, prices went up. Including goods, services, and income. Unfortunately, the income did not keep up with all the other prices, which makes it a problem.
And if you make more money, then you must pay more taxes. This is because your effective tax rate changes as you move in your brackets. Each year, the IRS adjusts the tax brackets for inflation. Given what happened in the past year, they have larger adjustments.
Keep in mind you are paying taxes for the year of 2022 this year and the 2023 tax bracket will affect only 2023 year. And the percentage you are paying taxes is stepwise.
You can calculate and do the math yourself. These tax brackets have increased by 7%. This is a great way to adjust for inflation.
Take away, the tax brackets have been calculated to adjust for the changes in the economy. Unfortunately, this does not mean you will receive a larger tax return. Your payroll will adjust the withholding to the new bracket to estimate the appropriate taxes taken out.
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DISCLOSURE: We are not financial advisers. The ideas presented in this video are for entertainment purposes only. Although the information is researched and vetted beforehand, it may not be up to date at the time of viewing. Please do your due diligence and research on the topic. You (and only you) are responsible for the financial decisions that you make.
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