# Tax Projection Worksheet tax rates and inflation-adjusted amounts (1040)

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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

#### 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

#### 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
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.