There are many tax laws constantly changing every year. For instance, the additional standard deduction for blind people and senior citizens will be $1,500 for married households and $1,850 for single households in 2023, according to Go Banking Rates. This is just one of many recent tax developments. What other tax law changes can we expect to see in 2023? Below are some of the changes your tax lawyers might inform you of later.
New Tax Incentives
In an effort to attract businesses, many states are offering tax incentives. For example, Ohio offers tax incentives to companies that create new jobs. These tax law changes can be beneficial for businesses looking to expand or relocate. If you’re considering taking advantage of any tax incentives, be sure to speak with your tax lawyers first. They can give you the best advice on where to pursue a new business and where to take advantage of tax breaks.
Higher Taxes for the Wealthy
One of the tax law changes we can expect to see in 2023 is higher taxes for the wealthy. This is due to the expiration of the previous administration’s tax cuts. The tax rates for individuals earning over $400,000 and couples earning over $600,000 will go up. If you’re in this tax bracket, it’s important to speak with your tax lawyers about how these changes will affect you and your taxes.
Estate Tax Changes
Another change we can expect to see in 2023 is an increase in the estate tax. The estate tax is a tax on the value of property inherited from a deceased person. The tax rate is currently 40%. However, it’s set to increase to 45% in 2023. If you’re expecting to inherit property, it’s important to speak with your tax lawyers about how these changes will affect you. Getting caught without enough to cover your taxes is never easy.
Keep these tax changes in mind as we head into 2023. If you have any questions about how these tax law changes will affect you, consult Michael C. Whelan JD CPA, where the tax lawyers you can trust work. They can help you understand the changes and how they’ll impact your taxes. Call us today to get started with your taxes early.