What IRS adjustments for inflation mean for taxpayers

Published: Oct. 19, 2022 at 10:39 PM EDT
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ATLANTA, Ga. (Atlanta News First) - The Internal Revenue Service announced adjustments to 2023 federal income tax brackets.

The adjustments are more significant because of inflation.

“How much you save will be relative to your personal situation,” Andrew Poulos, with Poulos Accounting & Consulting, said. “So, it’s not going to be the same for every household, but certainly could have nice little savings come tax time.”

According to Poulos, the IRS makes adjustments every year, but typically not this much.

“Some people will see a savings of $1,000 during tax time on your tax return,” he said. “Others might see a bit more.”

The IRS is bumping tax brackets by about 7 percent for several types of tax filers.

The standard deduction will go up by $900 for single people and by $1,800 for married couples filing jointly.

Poulos called it good news during a time when most people could use it.

“At the end of the day we’re all looking to save money and keep more money in our pockets at a time when groceries are more expensive, fuel prices are at record prices, every little bit helps,” he said.

The adjustments are for 2023, so taxpayers won’t get those returns until 2024.