UltraTax CS
The standard deduction, exemption amount, and individual tax rate brackets are adjusted annually for cost-of-living increases. The following IRS-released adjustments are used by the Tax Projection Worksheet.
2023 tax rate tables
Table 1 - Married individuals filing joint returns and surviving spouses
| If taxable income is over- | But not over- | Tax is- | Plus | Of the amount over- |
|---|---|---|---|---|
| $0.00 | $22,000.00 | $0.00 | 10.00% | $0.00 |
| $22,000.00 | $89,450.00 | $2,200.00 | 12.00% | $22,000.00 |
| $89,450.00 | $190,750.00 | $10,294.00 | 22.00% | $89,450.00 |
| $190,750.00 | $364,200.00 | $32,580.00 | 24.00% | $190,750.00 |
| $364,200.00 | $462,500.00 | $74,208.00 | 32.00% | $364,200.00 |
| $462,500.00 | $693,750.00 | $105,664.00 | 35.00% | $462,500.00 |
| $693,750.00 | $186,601.50 | 37.00% | $693,750.00 |
Table 2 - Heads of household
| If taxable income is over- | But not over- | Tax is- | Plus | Of the amount over- |
|---|---|---|---|---|
| $0.00 | $15,700.00 | $0.00 | 10.00% | $0.00 |
| $15,700.00 | $59,850.00 | $1,570.00 | 12.00% | $15,700.00 |
| $59,850.00 | $95,350.00 | $6,868.00 | 22.00% | $59,850.00 |
| $95,350.00 | $182,100.00 | $14,678.00 | 24.00% | $95,350.00 |
| $182,100.00 | $231,250.00 | $35,498.00 | 32.00% | $182,100.00 |
| $231,250.00 | $578,100.00 | $51,226.00 | 35.00% | $231,250.00 |
| $578,100.00 | $172,623.50 | 37.00% | $578,100.00 |
Table 3 - Unmarried individuals other than surviving spouses and heads of household
| If taxable income is over- | But not over- | Tax is- | Plus | Of the amount over- |
|---|---|---|---|---|
| $0.00 | $11,000.00 | $0.00 | 10.00% | $0.00 |
| $11,000.00 | $44,725.00 | $1,100.00 | 12.00% | $11,000.00 |
| $44,725.00 | $95,375.00 | $5,147.00 | 22.00% | $44,725.00 |
| $95,375.00 | $182,100.00 | $16,290.00 | 24.00% | $95,375.00 |
| $182,100.00 | $231,250.00 | $37,104.00 | 32.00% | $182,100.00 |
| $231,250.00 | $578,125.00 | $52,832.00 | 35.00% | $231,250.00 |
| $578,125.00 | $174,238.25 | 37.00% | $578,125.00 |
Table 4 - Married individuals filing separate returns
| If taxable income is over- | But not over- | Tax is- | Plus | Of the amount over- |
|---|---|---|---|---|
| $0.00 | $11,000.00 | $0.00 | 10.00% | $0.00 |
| $11,000.00 | $44,725.00 | $1,100.00 | 12.00% | $11,000.00 |
| $44,725.00 | $95,375.00 | $5,147.00 | 22.00% | $44,725.00 |
| $95,375.00 | $182,100.00 | $16,290.00 | 24.00% | $95,375.00 |
| $182,100.00 | $231,250.00 | $37,104.00 | 32.00% | $182,100.00 |
| $231,250.00 | $346,875.00 | $52,832.00 | 35.00% | $231,250.00 |
| $346,875.00 | $93,300.75 | 37.00% | $346,875.00 |
Maximum Capital Gains Rates - Zero Rate
| Filing Status | Maximum Amount |
|---|---|
| Single and Married filing separately | $44,625.00 |
| Married filing jointly and surviving spouses | $89,250.00 |
| Head of Household | $59,750.00 |
Maximum Capital Gains Rates - 15 Percent Rate
| Filing Status | Maximum Amount |
|---|---|
| Single | $492,300.00 |
| Married filing jointly and surviving spouses | $553,850.00 |
| Married filing separately | $276,925.00 |
| Head of Household | $523,050.00 |
Child tax credit
The value for determining the additional child tax credit that may be refundable is $2,500.00. The maximum refundable credit per qualifying child is $1,600.00.
Earned income credit
For 2023, the following values are used to project the earned income credit.
| Item | None | One child | Two children | Three+ children |
|---|---|---|---|---|
| Earned Income Amount | $7,840.00 | $11,750.00 | $16,510.00 | $16,510.00 |
| Max Credit | $600.00 | $3,995.00 | $6,604.00 | $7,430.00 |
| Threshold Phaseout | $9,800.00 | $21,560.00 | $21,260.00 | $21,560.00 |
| Completed Phaseout | $17,640.00 | $46,560.00 | $52,918.00 | $56,838.00 |
| MFJ Threshold Phaseout | $16,370.00 | $28,120.00 | $28,120.00 | $28,120.00 |
| MFJ Completed Phaseout | $24,210.00 | $53,120.00 | $59,478.00 | $63,398.00 |
Educator expenses
The 2023 maximum above-the-line educator expense deduction remains at $300.
IRA contribution
For 2023, the maximum allowed IRA contribution is $6,500 for taxpayers under age 50, and $7,500 for taxpayers age 50 and older.
Standard deduction
| Filing status | Deduction |
|---|---|
| Married filing jointly and surviving spouses | $27,700 |
| Head of household | $20,800 |
| Unmarried individuals (other than surviving spouses and heads of household) | $13,850 |
| Married filing separately | $13,850 |
Aged and blind
For 2023, the additional standard deduction for the aged and blind is $1,500.00. If the individual is unmarried and not a surviving spouse, the amount is $1,850.00.
State and local tax deduction limited
For tax years beginning after December 31, 2017, and before January 1, 2026, the itemized deduction for state and local tax is limited to $10,000 ($5,000 for married filing separately).
Itemized deduction limitation phaseout
For tax years beginning after December 31, 2017 and before January 1, 2026, the "Pease limitation" on itemized deductions is suspended.
Personal exemption
The personal exemption amount for tax years beginning after December 31, 2017, and before January 1, 2026, is reduced to zero.
Social Security Taxes
The maximum wage base for 2023 is $160,200. Self-employed individuals are subject to 12.4 percent on self-employment income up to the threshold.
AMT exemption
| Filing status | Exemption |
|---|---|
| Single or Head of household | $81,300.00 |
| Married filing jointly and surviving spouses | $126,500.00 |
| Married filing separately | $63,250.00 |
AMT exemption phaseout
| Filing status | Phaseout |
|---|---|
| Married filing jointly and surviving spouses | $1,156,300.00 |
| Single or Head of household | $578,100.00 |
| Married filing separately | $578,150.00 |
AMT excess taxable income above which 28% tax rate applies
| Filing status | AMTI |
|---|---|
| Married individuals filing separate returns | $110,350.00 |
| Joint returns, unmarried individuals | $220,700.00 |
AMT excess taxable income 26% adjustment
| Filing status | AMTI |
|---|---|
| Married individuals filing separate returns | $4,414.00 |
| Joint returns, unmarried individuals | $2,207.00 |
Additional AMTI for married filing separately
The additional amount calculates when the Tax Projection Worksheet - Alternative Minimum Tax line 4 exceeds $831,150.00. (The 2022 amount is $776,100.00.) The additional amount calculates as 25% of the excess of the amount on line 4 over $831,150, not to exceed $63,250.
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