Honu Wealth Management
Garth A Williams, MBA, CFP®
Financial Advisor
1307 S Mary Ave, Suite 101
Sunnyvale, CA 94087
650-917-3400
garth@honuwealth.com
www.HonuWealth.com
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2023 Key Numbers
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| | Individual Income Tax Planning
Adoption credit
| Adoption credit | 2022 | 2023 |
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| Maximum credit | $14,890 | $15,950 | | Phaseout threshold amount | $223,410 | $239,230 | | Completed phaseout amount after | $263,410 | $279,230 |
Alternative Minimum Tax (AMT)
| Maximum AMT exemption amount | 2022 | 2023 |
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| Married filing jointly or surviving spouse | $118,100 | $126,500 | | Single or head of household | $75,900 | $81,300 | | Married filing separately | $59,050 | $63,250 |
| AMT income exemption phaseout threshold | 2022 | 2023 |
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| Married filing jointly or surviving spouse | $1,079,800 | $1,156,300 | | Single or head of household | $539,900 | $578,150 | | Married filing separately | $539,900 | $578,150 |
| AMT tax rate (26% rate applies to AMTI at or below amount;
28% applies to AMTI above amount) | 2022 | 2023 |
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| All taxpayers except married filing separately | $206,100 | $220,700 | | Married filing separately | $103,050 | $110,350 |
Charitable deductions
| Use of auto | 2022 | 2023 |
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| Deductible standard mileage rate | $0.14 | $0.14 |
| Charitable fundraising "insubstantial benefit"
limitation | 2022 | 2023 |
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| Low-cost article (re: unrelated business income) | $11.70 | $12.50 |
| Gifts to donor in return for contribution | 2022 | 2023 |
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| Token gift maximum cost1 | $11.70 | $12.50 | | Minimum contribution amount1 | $58.50 | $62.50 | | 2% threshold amount2 | $117 | $125 |
1 Contribution is fully deductible if minimum
contribution amount is met and cost of token gift does not exceed maximum
2 Charitable contribution is fully deductible
if the benefit received by the donor doesn't exceed the lesser of the threshold
amount or 2% of the amount of the contribution
Child tax credit
| Amount of credit | 2022 | 2023 |
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| Maximum credit per qualifying child | $2,000 | $2,000 | | Nonrefundable credit for dependents
who are not qualifying children | $500 | $500 |
| Phaseout -- credit reduced by $50 for each $1,000 or fraction
thereof of MAGI over (but not to be reduced below $2,000): | 2022 | 2023 |
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| Married filing jointly or surviving spouse | N/A | N/A | | Head of household | N/A | N/A | | Single or married filing separately | N/A | N/A |
| Phaseout -- any remaining credit reduced by $50 for each $1,000 or fraction
thereof of MAGI over: | 2022 | 2023 |
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| Married filing jointly | $400,000 | $400,000 | | All other filing status | $200,000 | $200,000 |
| Refundability -- up to specified percentage of earned income
in excess of specified amount | 2022 | 2023 |
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| Percentage | 15% | 15% | | Amount | $2,500 | $2,500 | | Maximum refundable amount of
credit | $1,500 | $1,600 |
Classroom expenses of elementary and secondary school
teachers
| Classroom expense deduction | 2022 | 2023 |
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| Maximum above-the-line deduction | $300 | $300 |
Earned income tax credit (EITC)
| Investment income limit | 2022 | 2023 |
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| Excessive investment income limit ("disqualified income
limit") | $10,300 | $11,000 |
| Maximum amount of EITC per number of children | 2022 | 2023 |
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| 0 children | $560 | $600 | | 1 child | $3,733 | $3,995 | | 2 children | $6,164 | $6,604 | | 3 or more children | $6,935 | $7,730 |
| Maximum amount of earned income on which EITC is based
(earned income over this amount but under the threshold phaseout amount will
not change the amount of the credit received) | 2022 | 2023 |
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| 0 children | $7,320 | $7,840 | | 1 child | $10,980 | $11,750 | | 2 or more children | $15,410 | $16,510 |
| Threshold phaseout amount for joint filers per number of
children | 2022 | 2023 |
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| 0 children | $15,290 | $16,370 | | 1 child | $26,260 | $28,120 | | 2 children | $26,260 | $28,120 | | 3 or more children | $26,260 | $28,120 |
| Threshold phaseout amount for other filers per number of
children | 2022 | 2023 |
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| 0 children | $9,160 | $9,800 | | 1 child | $20,130 | $21,560 | | 2 children | $20,130 | $21,560 | | 3 or more children | $20,130 | $21,560 |
| Completed phaseout amount for joint filers per number of
children | 2022 | 2023 |
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| 0 children | $22,610 | $24,210 | | 1 child | $49,622 | $53,120 | | 2 children | $55,529 | $59,478 | | 3 or more children | $59,187 | $63,398 |
| Completed phaseout amount for other filers per number of
children | 2022 | 2023 |
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| 0 children | $16,480 | $17,640 | | 1 child | $43,492 | $46,560 | | 2 children | $49,399 | $52,918 | | 3 or more children | $53,057 | $56,838 |
Expatriation
| Covered expatriate | 2022 | 2023 |
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| An individual with "average annual net income tax" of more
than this amount for the five taxable years ending before his or her loss of
citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) | $178,000 | $190,000 | | IRC §877A(3) exclusion amount | $767,000 | $821,000 |
Foreign earned income
| Amount excluded from income | 2022 | 2023 |
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| Exclusion amount | $112,000 | $120,000 |
Itemized deductions
| Phaseout threshold | 2022 | 2023 |
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| Married filing jointly | N/A | N/A | | Head of household | N/A | N/A | | Unmarried | N/A | N/A | | Married filing separately | N/A | N/A |
Kiddie tax
| Unearned income limit | 2022 | 2023 |
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| Amount exempt from tax | $1,150 | $1,250 | | Additional amount taxed at child's rate | $1,150 | $1,250 | | Unearned income over this amount generally taxed at parents' tax rates | $2,300 | $2,500 |
| Parent's election | 2022 | 2023 |
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| Election to include child's income on parent's return --
child's gross income requirement | $1,150 - $11,500 | $1,250 - $12,500 |
| AMT | 2022 | 2023 |
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| AMT exemption for child subject to kiddie tax | Lesser of $7,950 + child's earned income or $73,600
| Lesser of $8,800 + child's earned income or $81,300 |
Medicare tax (additional payroll tax and unearned
income contribution tax)
| Payroll tax | 2022 | 2023 |
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| Additional Medicare payroll tax (and self-employment tax)
percentage rate | 0.90% | 0.90% |
| Applies to wages/self-employment income exceeding | 2022 | 2023 |
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| Individuals | $200,000 | $200,000 | | Married filing jointly
| $250,000 | $250,000 | | Married filing separately | $125,000 | $125,000 |
| Tax on unearned income | 2022 | 2023 |
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| Unearned income Medicare contribution tax rate | 3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b)
modified adjusted gross income exceeding | 2022 | 2023 |
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| Individuals | $200,000 | $200,000 | | Married filing jointly
| $250,000 | $250,000 | | Married filing separately | $125,000 | $125,000 |
Nanny tax
| Compensation threshold | 2022 | 2023 |
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| Domestic employee coverage threshold | $2,400 | $2,600 |
Personal exemption amount
| Amount | 2022 | 2023 |
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| Personal exemption amount | N/A
| N/A
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| Married filing jointly | 2022 | 2023 |
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| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
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| Head of household | 2022 | 2023 |
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| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
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| Unmarried | 2022 | 2023 |
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| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
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| Married filing separately | 2022 | 2023 |
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| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A | N/A |
"Saver's Credit"
| Elective Deferrals and IRA or ABLE Contributions by Certain
Individuals | 2022 | 2023 |
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| Maximum credit amount | $1,000 | $1,000 |
| Applicable percentage of 50% applies to AGI | 2022 | 2023 |
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| Joint Return | $0 - $41,000 | $0 - $43,500 | | Head of Household | $0 - $30,750 | $0 - $32,625 | | Other | $0 - $20,500 | $0 - $21,750 |
| Applicable percentage of 20% applies to AGI | 2022 | 2023 |
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| Joint Return | $41,001 - $44,000 | $43,501 - $47,500 | | Head of Household | $30,751 - $33,000 | $32,626 - $35,625 | | Other | $20,501 - $22,000 | $21,751 - $23,750 |
| Applicable percentage of 10% applies to AGI | 2022 | 2023 |
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| Joint Return | $44,001 - $68,000 | $47,501 - $73,000 | | Head of Household | $33,001 - $51,000 | $35,626 - $54,750 | | Other | $22,001 - $34,000 | $23,751 - $36,500 |
| Applicable percentage of 0% applies to AGI | 2022 | 2023 |
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| Joint Return | Over $68,000
| Over $73,000 | | Head of Household | Over $51,000 | Over $54,750 | | Other | Over $34,000 | Over $36,500 |
Standard deductions
| Amounts | 2022 | 2023 |
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| Married filing jointly or surviving spouse | $25,900 | $27,700 | | Head of household | $19,400 | $20,800 | | Unmarried | $12,950 | $13,850 | | Married filing separately | $12,950 | $13,850 | | Dependent--Standard deduction cannot exceed the greater
of: | $1,150 or $400 + earned income | $1,250 or $400 + earned income | | Additional deduction for aged or blind (single or head of
household) | $1,750 | $1,850 | | Additional deduction for aged or blind (all other filing
statuses) | $1,400 | $1,500 |
Standard mileage rates
| Applicable rates
| 2022 | 2023 |
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| Use of auto for business purposes (cents per mile) | $0.585 or $0.625* | $0.655 | | Use of auto for medical purposes (cents per
mile) | $0.18 or $0.22* | $0.22 | | Use of auto for moving purposes (cents per mile) | $0.18 or $0.22* | $0.22 | | * The IRS raised mileage rates for the final 6 months of 2022, so the
higher rates noted above are effective as of July 1, 2022. |
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| This information was developed by Forefield, Inc. an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.
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| Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2023. |
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