HIGH INFLATION SPURS MOST SIGNIFICANT TAX CODE INCREASES IN NEARLY 40 YEARS

ARLINGTON, Va., Sept. 13, 2022 /PRNewswire/ -- Bloomberg Tax today released its 2023 Projected U.S. Tax Rates, which forecasts that inflation adjusted amounts in the tax code will increase by roughly 7.1% from 2022, more than double last year's increase of 3%. Bloomberg Tax also projects that several key deductions for taxpayers will see notable year-over-year increases, with the foreign earned income exclusion increasing to $120,000 from $112,000 and the annual exclusion for gifts increasing to $17,000 from $16,000, thereby allowing taxpayers to increase their gifts without tax implications.

Issued annually, Bloomberg Tax's Projected U.S. Tax Rates Report provides early, accurate notice of the potential tax savings that could be realized due to increases in deduction limitations, upward adjustments to tax brackets, and increases to numerous other key thresholds. The full report is available at https://onb-tax.com/xuQh50KHZ18.

"We predict that inflation-adjusted amounts in the tax code will increase significantly in 2023 compared to prior years due to the economic environment," said Heather Rothman, Vice President, Analysis & Content, Bloomberg Tax. "Taxpayers and advisors can use our projections to begin their 2023 tax planning before the IRS publishes the official 2023 inflation-adjusted amounts later this year."

The report also accounts for changes made under the recently enacted Inflation Reduction Act, including the increase in the §179D deduction for energy efficient commercial building property if new wage and apprenticeship requirements are met, which may entice a more sophisticated type of worker for companies using this tax incentive.

Other key adjustments, with comparisons of the 2022 amounts and 2023 projections, include:

Individual Income Tax Rate Brackets

Standard Deduction

Alternative Minimum Tax (AMT)

The 2023 Projected U.S. Tax Rates report is based on changes to the Chained Consumer Price Index for All Urban Consumers, which were published today by the U.S. Bureau of Labor Statistics.

About Bloomberg Tax & Accounting  
Bloomberg Tax & Accounting provides practitioner-driven research and technology solutions that deliver timely, strategic insights to enable smarter decisions. From our unparalleled Tax Management Portfolios to technology designed to streamline the most complex planning and compliance scenarios, we deliver essential news and analysis, practical perspectives, and software that help tax and accounting professionals around the globe mitigate risk and maximize business results. For more information, visit Bloomberg Tax. 

View original content to download multimedia:https://www.prnewswire.com/news-releases/high-inflation-spurs-most-significant-tax-code-increases-in-nearly-40-years-301623373.html

SOURCE Bloomberg Tax & Accounting