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Daniel R. Cuddy, CPA, CFP®
Personal Financial Representative
Cuddy Financial Services
7 William Street
Auburn, NY 13021
Phone: 315-252-3600
Fax: 315-252-3625
Email: dcuddy@cuddyfinancial.com
2023 Tax Planning Guide
Alternative Minimum Tax
The exemption for taxpayers subject to the Alternative Minimum Tax (AMT), which limits allowable deductions for some higher-income taxpayers, increased significantly in 2023. If you believe your taxable income could trigger the AMT, increasing tax-deferred contributions to qualified retirement plans could help lower your AMT or even help you avoid the alternative tax altogether.
KIDDIE TAX
In 2022, the first $1,150 of a minor child's unearned income qualified for the standard deduction. The next $1,150 was taxed at the child's income tax rate. A child (or young adult's) unearned income beyond $2,300 was taxed at the parent's normal tax bracket. In 2023, the limits rise to $1,250 and $2,500.SOCIAL SECURITY TAX WAGE BASE INCREASED
Beginning in 2023, the maximum earnings subject to Social Security tax will rise to $160,200 from $147,000 in 2022. Currently, the employer and employee each pay half of the 12.4% Social Security tax due. Workers also pay a Medicare tax of 1.45% each year, plus an extra 0.9% on wages earned over $200,000. Self-employed workers must pay the full 12.4% Social Security tax.CONTACT US
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Cuddy Financial Services and LTM Client Marketing are unrelated companies. This guide was created by LTM Client Marketing and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Avantax Wealth Management® or its subsidiaries.
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