At this date in February, we are all busily assembling our tax documents. I thought this would be a good time to review some important tax information. In our next blog, we’ll turn our attention to Social Security.
Let’s start with some dates:
Deadlines for Contributions to Traditional IRAs, Roth IRAs and SEP IRAs
2022 Contributions Tuesday, April 18, 2023
2023 Contributions Tuesday. April 16, 2024
2023 Roth IRA Conversions Friday, December 29, 2023
Required Minimum Distributions (RMDs)
Age of IRA Holder Deadline for First RMD
Turned 72 in 2022 Friday, March 31, 2023
Turn 72 in 2023 Tuesday, April 1, 2025
Every year after the first, the RMD must be taken by December 31st of each year.
2023 Estimated Tax Payments
For the Period Due Date
January 1-March 31 Tuesday, April 18, 2023
April 1-May 31 Thursday, June 15, 2023
June 1-August 31 Friday, September 15, 2023
September 1-Decemebr 31 Monday, January 15, 2024
Some rates:
Income Tax Rate Schedules – Single Taxpayers
If Taxable Income is: Tax Payable is: |
But Not Plus |
Over Over Amount (%) of the Amount Over |
$0 |
$11,000 |
/-- 10% of Taxable Income--/ |
||||
$11,000 |
$44,725 |
$1,100 |
12% |
$11,000 |
|
|
$44,725 |
$95,375 |
$5,147 |
22% |
$44,725 |
|
|
$95,375 |
$182,100 |
$16,290 |
24% |
$95,375 |
|
|
$182,100 |
$231,250 |
$37,104 |
32% |
$182,100 |
|
|
$231,250 |
$578,125 |
$52,382 |
35% |
$231,250 |
|
|
$578,125 |
- |
$174,238 |
37% |
$539,900 |
|
|
Income Tax Rate Schedules – Married Taxpayers Filing Jointly
If Taxable Income is: Tax Payable is: |
But Not Plus |
Over Over Amount (%) of the Amount Over |
$0 |
$22,000 |
/-- 10% of Taxable Income--/ |
|||||||||||
$22,000 |
$89,450 |
$2,200 |
12% |
$22,000 |
|
||||||||
$89,450 |
$190,750 |
$10,294 |
22% |
$89,450 |
|
||||||||
$190,750 |
$364,200 |
$32,580 |
24% |
$190,750 |
|
||||||||
$364,200 |
$462,500 |
$74,208 |
32% |
$364,200 |
|
||||||||
$462,500 |
$693,750 |
$105,664 |
35% |
$462,500 |
|
||||||||
$693,750 |
- |
$186,602 |
37% |
$693,750 |
|
||||||||
2023 Income Tax Rate on Long-Term Capital Gains and Qualified Dividends
Taxable Income Level
Tax Rate Single Taxpayers Married Taxpayers Filing Jointly
0% $0 to $44,625 $0 to $89,250
15% $44,625 to $492,300 $89,250 to $553,850
20% over $492,300 over $553,850
Short-Term Capital Gains are taxed at regular income tax rates.
Qualified dividends are generally shares in domestic corporations and certain qualified foreign corporations which you have held for at least a specified minimum period of time, known as a holding period.
Check out our Tax Library at https://www.regardingyourmoney.com/learning_center/tax_library/ for more Tax Resources.
Please feel free to call (215-836-4880) or email the office (ellend@regardingyourmoney.com) to set up an appointment to discuss any investment questions you may have. Or, visit us at regardingyourmoney.com.
Source: Manning & Napier