2023 Tax Reference Guide

By Steve Gelber on January 25, 2023

Each year there are updates to the tax code. Sometimes these are notable changes to how your taxes are completed, the rates at which you are taxed, and the amounts that you can deduct for certain expenses. Please click here to refer to our 2023 Tax Guide for updated 2023 tax information. Below please find a summary of some of the notable changes:

Annual Retirement Contributions Rise!

• Those under age 50 can contribute $6,500 to an IRA or Roth IRA, up $500 (the catch up contribution for those 50 and older is still $1,000)
• 401(k) and 403(b) limits rise to $22,500 for those under 50 and $30,000 for those 50 and older
• Simple IRA limits rise to $15,500 for those under 50 and $19,000 for those 50 and older
• SEP IRA and Solo(k) Total Contribution Limits rise to $66,000 (subject to income limitations)

Annual Gifting Limits Rise!

• You can gift up to $17,000 per person ($34,000 per couple) to any individual in 2023 without utilizing your lifetime exemption
• You can gift up to $17,000 per person ($34,000 per couple) to a Section 529 Plan this year ($85,000 per person, $170,000 per couple for front-loading 5 years of contributions)

Social Security Income Limit Rises

• The amount of income that is subject to Social Security Tax rises this year to $160,200. This is the most notable increase in several years. The first $160,200 of each individual’s earned income will be subject to Social Security taxation.
• The Medicare Surtax and Hospital Insurance Tax on Net Investment Income will remain the same (3.8% and 0.9%, respectively). Married couples are subject to these taxes with a Modified Adjusted Gross Income (MAGI) of $250,000 or more (Single Filers are subject at $200,000, Married filing Separately at $125,000).