February 10, 2023

2023 – 02/07 – Answers to your questions about 2023 limits on individual taxes

Many people are more concerned about their 2022 tax bills than they are about their 2023 tax situations. That’s because 2022 individual tax returns are due to be filed in 10 weeks. However, it’s a good time to acquaint yourself with tax amounts for this year, many of which have increased substantially due to inflation. For example, the amount you must earn in 2023 before you can stop paying Social Security on your salary is $160,200 (up from $147,000 in 2022). If you’re eligible in 2023, you can contribute $6,500 to a traditional or Roth IRA (up from $6,000 in 2022). If you’re 50 or older, you can make another $1,000 “catch up” contribution (for 2023 and 2022). Questions? Contact us.