Cross References

  • Rev. Proc. 2022-38
  • Notice 2022-55

Each year, a number of provisions in the Internal Revenue Code (IRC) are adjusted for inflation. The IRS recently released the inflation adjusted amounts for 2023. The following chart highlights a number of these adjustments, as they compare to the 2021 and 2022 amounts. A complete list will appear in Tab 1 of the 1040/Deluxe Editions of TheTaxBook.

Tax Provision 2023 2022 2021 Standard deduction – MFJ $27,700 $25,900 $25,100 Standard deduction – Single $13,850 $12,950 $12,550 Standard deduction – HOH $20,800 $19,400 $18,800 Qualifying relative income limit $4,700 $4,400 $4,300 Maximum EIC for 3 or more qualifying children $7,430 $6,935 $6,728 Maximum EIC for 2 qualifying children $6,604 $6,164 $5,980 Maximum EIC for 1 qualifying child $3,995 $3,733 $3,618 Maximum EIC for no qualifying children $600 $560 $1,502 Section 179 expense limit $1,160,000 $1,080,000 $1,050,000 Section 179 investment limit $2,890,000 $2,700,000 $2,620,000 Section 179 SUV limit $28,900 $27,000 $26,200 Estates basic exclusion amount $12,920,000 $12,060,000 $11,700,000 Annual exclusion for gifts $17,000 $16,000 $15,000 Defined contribution plan contribution limit $66,000 $61,000 $58,000 401(k) elective deferral limit for under age 50 $22,500 $20,500 $19,500 401(k) elective deferral limit for age 50 and older $30,000 $27,000 $26,000 SIMPLE elective deferral limit for under age 50 $15,500 $14,000 $13,500 SIMPLE elective deferral limit for age 50 and older $19,000 $17,000 $16,500 IRA deduction limit for under age 50 $6,500 $6,000 $6,000 IRA deduction limit for age 50 and older $7,500 $7,000 $7,000 Key employee definition for top-heavy plans $215,000 $200,000 $185,000 Highly compensated employee definition $150,000 $135,000 $130,000 Qualified plan compensation limit $330,000 $305,000 $290,000 Child Tax Credit (per qualifying child) * $2,000 $2,000 3,000/3,600 Refundable portion of child tax credit * $1,600 $1,500 3,000/3,600 QBI threshold amount – MFJ $364,200 $340,100 $329,800 QBI threshold amount – Single & HOH $182,100 $170,050 $164,900 QBI threshold amount – MFS $182,100 $170,050 $164,925 Foreign earned income exclusion $120,000 $112,000 $108,700 AMT exemption – MFJ & QW $126,500 $118,100 $114,600 AMT exemption – Single & HOH $81,300 $75,900 $73,600 AMT exemption – MFS $63,250 $59,050 $57,300 * For 2021 only, the Child Tax Credit is increased from $3,000 to $3,600 per child who has not yet attained age 6.