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
 
 




2023 Key Numbers

 

Individual Income Tax Planning

Adoption credit

Adoption credit20222023
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 amount20222023
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 threshold20222023
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)20222023
All taxpayers except married filing separately$206,100$220,700
Married filing separately$103,050$110,350

Charitable deductions

Use of auto20222023
Deductible standard mileage rate$0.14$0.14
Charitable fundraising "insubstantial benefit" limitation20222023
Low-cost article (re: unrelated business income)$11.70 $12.50
Gifts to donor in return for contribution20222023
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 credit20222023
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):20222023
Married filing jointly or surviving spouseN/AN/A
Head of householdN/AN/A
Single or married filing separatelyN/AN/A
Phaseout -- any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20222023
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 amount20222023
Percentage15%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 deduction20222023
Maximum above-the-line deduction$300$300

Earned income tax credit (EITC)

Investment income limit20222023
Excessive investment income limit ("disqualified income limit")$10,300 $11,000
Maximum amount of EITC per number of children20222023
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)20222023
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 children20222023
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 children20222023
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 children20222023
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 children20222023
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 expatriate20222023
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 income20222023
Exclusion amount$112,000 $120,000

Itemized deductions

Phaseout threshold20222023
Married filing jointlyN/AN/A
Head of householdN/AN/A
UnmarriedN/AN/A
Married filing separatelyN/AN/A

Kiddie tax

Unearned income limit20222023
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 election20222023
Election to include child's income on parent's return -- child's gross income requirement$1,150 - $11,500$1,250 - $12,500
AMT20222023
AMT exemption for child subject to kiddie taxLesser 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 tax20222023
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20222023
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20222023
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20222023
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20222023
Domestic employee coverage threshold$2,400 $2,600

Personal exemption amount

Amount20222023
Personal exemption amountN/A N/A
Married filing jointly20222023
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Head of household20222023
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Unmarried20222023
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Married filing separately20222023
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/AN/A

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20222023
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20222023
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 AGI20222023
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 AGI20222023
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 AGI20222023
Joint ReturnOver $68,000 Over $73,000
Head of HouseholdOver $51,000Over $54,750
OtherOver $34,000Over $36,500

Standard deductions

Amounts20222023
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 20222023
Use of auto for business purposes (cents per mile)$0.585 or $0.625*TBD
Use of auto for medical purposes (cents per mile)$0.18 or $0.22*TBD
Use of auto for moving purposes (cents per mile)$0.18 or $0.22*TBD
* 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.


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.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2022.