Archive

Monthly Archives: February 2024

Celebrate Presidents’ Day! 

This month we celebrate Presidents’ Day!  This federal holiday originally began as a way to honor George Washington’s birthday on February 22nd. Abraham Lincoln has also been recognized and celebrated along with Washington, as his birthday is in the same month. Since then, the day has grown into a more general celebration of all U.S. presidents.  So, what better way to honor them than to learn about them? We’ve had forty-six presidents stretching back over 200 years.  How well do you know them?

Test your knowledge with our quiz below!1

WHO WAS THIS PRESIDENT?

This peacetime president balanced the budget every year of his presidency and left the office with a smaller budget than he inherited. He was the only president to accomplish this.   _______________________________
This president lasted only 32 days in office, the shortest stint of any president.  _______________________________
This president became such a skillful poker player while stationed in the Navy during World War II that his winnings helped launch his political career when he returned to the United States.   _______________________________
This president’s likeness appeared on the $500 bill, which was discontinued in 1969. _______________________________
This president was originally reluctant to becoming the president of the United States, and once said, “Ninety-nine percent of failures come from people who make excuses.”     ­­­­­­­­­­_______________________________
This is one our most famous presidents, featured on Mount Rushmore and given a nickname for his honesty.   _______________________________
On record for being the shortest president at 5’4” and weighing barely over 100 pounds. He is also known as the ‘Father of the Constitution’.   _______________________________
This president and his wife, Abigail, exchanged more than 1,100 letters over the course of their lengthy relationship.2   _______________________________
This president was also the youngest president in office and the first American to win a Nobel Peace Prize. He is responsible for officially naming the ‘White House’ and had a substantial role in the Panama Canal being made.   _______________________________
He was the first president born in a hospital in 1924, was one of two presidents who did not wear designer suits, and famously owned a peanut farm.   ________________________________

On behalf of everyone on my team, make it a memorable Presidents’ Day!

Answers:

1. Calvin Coolidge 2. William Henry Harrison 3. Richard M. Nixon 4. William McKinley 5. George Washington 6. Abraham Lincoln 7. James Madison 8. John Adams 9. Theodore Roosevelt 10. Jimmy Carter

Sources:

1 Presidents | The White House. (n.d.). The White House. https://www.whitehouse.gov/about-the-white-house/presidents/

2 https://www.history.com/news/us-presidents-facts

Important Updates for the 2023 Tax Year

Changes to the Filing Deadline

One thing to note before we get into the nitty-gritty: After two straight years with an April 18 deadline, this year returns to the more traditional April 15 deadline.1  (Remember, though, that filing earlier is almost always better than filing later.  We’ll get you your tax documents as soon as they become available.)

For those who need to file for an extension, the due date is October 15.1   

Changes to Federal Tax Brackets2

As it often does, the IRS has adjusted the 2023 tax brackets based on inflation.  These adjustments are even greater than usual this year as the country continues to contend with higher-than-normal prices.  While tax rates have not changed, bracket ranges increased by roughly 7%.  That’s good news for those whose wages have gone up to keep pace with the rise in prices, because it means they won’t necessarily get bumped into a higher bracket.  And some people may even find themselves dropping down a level, even if their pay stayed the same.   

Tax Rate

Single

Married, filing jointly

Head of Household

10%

0 to $11,000

0 to $22,000

0 to $15,700

12%

$11,001 to $44,725

$22,001 to $89,450

$15,701 to $59,850

22%

$44,726 to $95,375

$89,451 to $190,750

$59,851 to $95,350

24%

$95,376 to $182,100

$190,751 to $364,200

$95,351 to $182,100

32%

$182,101 to $231,250

$364,201 to $462,500

$182,101 to $231,250

35%

$231,251 to $578,125

$462,501 to $693,750

$231,251 to $578,100

37%

$578,126 and up

$693,751 and up

$578,101 and up

Changes to Capital Gains3

The income threshold for long-term capital gains rates has also gone up. 

Tax Rate

Single

Married, filing jointly

Head of Household

0%

0 to $44,625

0 to $89,250

0 to $59,750

15%

$44,626 to $492,300

$$89,251 to $553,850

$59,751 to $523,050

20%

$492,301 and up

$553,851 and up

$523,051 and up

Changes to Deductions

As you know, when you file your taxes, you can either claim a standard deduction or dive into the details and itemize your deductions.  (Since the passing of the Tax Cuts and Jobs Act back in 2017, most people choose the former.)  Per the IRS, the standard deduction is “a specific dollar amount that reduces the amount of income on which you’ve been taxed.”4

Due to inflation, the IRS has also increased the standard deduction for your 2023 taxes.  For singles, the standard deduction is now $13,850, up from $12,950.  For married couples filing jointly, it is $27,700 up from $25,900.  For heads of households, the standard deduction is $20,800, up from $19,400.5

Remember, you can’t take the standard deduction if you also itemize deductions.  And for married couples filing separately, both spouses must take the same type of deduction. So, if one spouse chooses to itemize, the other spouse must as well.

Changes to Alternative Minimum Tax (AMT) Exemption Levels5

When Congress passed the Tax Cuts and Jobs Act back in 2017, the number of Americans who owe the AMT has been drastically reduced.  But in case you fall under this category, the exemption levels for 2023 are as follows:

Single

Married, filing jointly

0 to $81,300

0 to $126,500

These exemption levels begin to phase out at $578,150 for single individuals, and $1,156,300 and $1,505,600 for married couples filing jointly. 

***

«Salutation», I hope you found this information helpful.  Obviously, it’s not a completely exhaustive list of every change for the 2023 tax year.  But it is an overview of some of the most important ones.  If you have any questions or concerns, please let me know.  My door is always open!     

Sources

1 “2024 tax filing season set for January 29,” Internal Revenue Service, https://www.irs.gov/newsroom/2024-tax-filing-season-set-for-january-29-irs-continues-to-make-improvements-to-help-taxpayers

2 “2023 Tax Rate Schedules,” Internal Revenue Service, https://www.irs.gov/publications/p17#d0e50213

3 “Capital gains and losses,” Internal Revenue Service, https://www.irs.gov/taxtopics/tc409

4 “Standard Deduction,” Internal Revenue Service, https://www.irs.gov/taxtopics/tc551

5 “IRS provides tax inflation adjustment for tax year 2023,” Internal Revenue Service, https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023