NASHVILLE, Tenn. (WTVF) — The recent inflation could mean tax savings for some next year. The IRS announced it will be adjusting many of its rules to account for the impact we've been seeing, so you can save on your tax bill.
Soon enough you could be getting to keep more of your income because of this change. Tax rates are automatically adjusted for inflation and next year expect higher cutoffs for all seven tax brackets and a higher standard deduction when you file.
Tax brackets will get around a 7% bump which means you will keep more of your income. The higher limits are aimed at avoiding "bracket creep" due to inflation, which can push workers who received raises into higher tax brackets even though their standard of living hasn't changed.
The IRS usually makes these kinds of adjustments, they're just not as noticeable as these will be.
Experts said all this means though that it's going to be harder to itemize deductions in 2023, tax payments, mortgage interest and charitable contributions. Trying to itemize those will less likely provide a tax benefit.
