Financial Literacy Tax Planning

Essential Financial Figures: Key Information and Financial Data for 2023

BY Spectrum Wealth Management | Mar 13, 2023

Confused about tax filing deadlines for 2023? What about possible deductions? Each year, there are important dates and other key financial information you need to know.

Important Dates for 2023

April 15Deadline to establish a 2022 SEP plan1
April 18“Tax Day” — the deadline to file Form 1040 or request extension1
April 182022 contribution deadline for Roth IRAs, traditional IRAs1
April 182022 contribution deadline for Health Savings Accounts (HSAs)1
April 182022 contribution deadline for Solo 401(k)s, SEPs and Keoghs1
April 18Deadline to correct excess IRA and/or qualified plan contributions1
April 18First installment of estimated taxes due for 20231
June 15Second installment of estimated taxes due for 20231
September 15Third installment of estimated taxes due for 20231
October 16Deadline to file Form 1040 for those who requested extension1
October 16Deadline to characterize ineligible IRA contributions made for TY 20221
December 31Deadline for IRA/qualified plan RMDs1
December 312023 employee contribution deadline for 401(k) plans1
December 31Deadline to settle a capital loss or gain transaction1
December 31Deadline to establish/fund a 2023 solo 401(k)1

Federal Income Tax Brackets & Rates2

RateSingleMarried JointHead of Household
10%$0 – $11,000$0 – $22,000$0 – $15700
12%$11,001 – $44,725$22,001 – $89450$15,701 – $59,850
22%$44,726 – $95,375$89,451 – $190,750$59,851 – $93,350
24%$95,376 – $182,100$190,751 – $364,200$95,351 – $182,100
32%$182,101 – $231,250$364,201 – $462,500$182,101 – $231,250
35%$231,251 – $578,125$465,501 – $693, 750$231,251 – $578,100
37%$578,126 and up$693,751 and up$578,101 and up

Standard Deductions2

Filing StatusStandard Deduction
Head of Household$20,800
Married Filing Jointly$27,700

Alternative Minimum Tax Exemptions2

Filing StatusExemption AmountExemption Amount
Phases Out At
28% Tax Rule Applies
For Income Over
Married Filing
Married Filing
Trusts and Estates$26,500$88,300$206,100

Qualified Dividents & Long-Term Capital Gains

Filing Jointly
0%$0 – $44,625$0 – $89,250
15%$44,626 – $492,300$89,251 – $533,850
20%$492,301 and up$553,851 and up
Married Filing SeparatelyHead of Household
0%$0 -$ 44,625$0 – $59,750
15%$44,626 – $276,900$59,751 – $523,050
20%$276,901 and up$523,051 and up

3.8% Net Investment Tax3

Filing StatusThreshold Amount
Head of household*$200,000
Married filing jointly$250,000
Married filing separately$125,000
Qualifying widow(er)**$250,000
* With Qualifying Person, ** With Dependent Child

Education Tax Benefits4,5,6

BenefitIncome Phase-Outs
Begin At
Education Savings
Bond Program
Cash in bods tax-free
(limited to amount of qualified expense)
$85,800 MAGI***
($128,500 MAGI for joint filers)
American Opportunity
Tax Credit
Credit of $2,500 (max)
per eligible student*
$80,000 MAGI***
($160,000 MAGI for joint filers)****
Lifetime Learning
Credit of up to $2,000**$80,000 MAGI***
($160,000 for joint filers)****
Coverdell Education
Savings Account
Tax-free earnings for qualified expenses
(contribute up to $2,000 annually)
$95,000 MAGI***
($190,000 MAGI for joint filers)
*40% of this credit is potentially refundable. **The amount of the credit is 20% of the first $10,000 of qualified education expenses. ***Modified Adjusted Gross Income. ****If MAGI is between $80 – 90K ($160 – 180K, MFJ), your credit is reduced.

Estate Tax Rates7

Amount of
Taxable Estate
Estate Tax AmountPlus This % On Amount
In Excess of Lower Limit
$0 – $10,000$018%
$10,001 – $20,000$1,80020%
$20,001 – $40,000$3,80022%
$40,001 – $60,000$8,20024%
$60,001 – $80,000$13,00026%
$80,001 – $100,000$18,20028%
$100,001 – $150,000$23,80030%
$150,001 – $250,000$23,80030%
$250,001 – $500,000$70,80034%
$500,001 – $750,000$155,80037%
$750,001 – $1,000,000$248,30039%
$1,000,000 and up$345,80040%

Estate and Gift Tax Exclusions, Exemptions2,8

Unified Estate and Gift Tax Exemption$12,920,000
Generation-Skipping (GST) Tax Exemption$12,920,000
Annual Exclusion Amount (AEA) for Gifts$17,000
AEA for Gifts to non-U.S. Citizen Spouse$175,000

Social Security9

Full retirement age (depending on year born)66/67
Maximum possible monthly benefit (at FRA)$3,627
Retirement earnings exempt amounts
based on normal retirement age (FRA)
$21,240/year under FRA
$56,520/year NRA reached
No limit after FRA

Social Security Taxable Benefits10

Filing StatusProvisional IncomeS.S. Amount Subject to Tax
Single, HOH, Qualifying Widow(er)**$0 – $25,000
$25,001 – $34,000
Up to 50%
Up to 85%
Married Filing Jointly$0 – $32,000
$32,001 – $44,000
Up to 50%
Up to 85%
Married Filing Separately (Living Together)$0+Up to 85%
*Provisional income is derived by adding the individual’s AGI, tax-free interest, 50% of Social Security benefits, and any other tax-free benefits. **Also married filing separately and living apart from spouse.

Retirement Plan Contribution Limits11,12

Contribution LimitCatch-Up
Contribution Limit
401(k), 403(b), 457, Thrift Savings Plan*$22,500$7,500
IRA and Roth IRA$6,500$1,000
Simple IRA$15,500$3,500
Solo 401(k)$66,000$7,500
Simplified Employee Pension (SEP-IRA)$66,000$7,500***
*Not including employer contributions. **For plan participants who will be age 50 or older in 2023. ***Only applies to employees permitted to make traditional IRA contributions to their SEP-IRA Accounts.

Income Limits11,13

Limit or Phase-Outs
for Individual Filers
Limit or Phase-Outs
for Married (Joint) Filers
Traditional IRA$73,000 – $83,000$116,000 – $136,000
Roth IRA$138,000 – $153,000$218,000 – $228,000
Retirement Saver’s
$36,500 ($54,750 if HOH)$73,000
*If one spouse has a workplace account and the other doesn’t, the other can claim the full deduction on their IRA contribution until the couple’s income exceeds $204,000. **If the contributing spouse has access to a retirement plan. ***The amount of this non-refundable credit is 50%, 20%, or 10% of up to $2,000 of qualified retirement savings contributions, depending on your AGI and filing status.

Medicare Costs14

Part A$506*
Part B$164.90**
Part CVaries by plan
Part DVaries by plan/income
*If applicable. You usually pay not Part A coverage premium if you or your spouse paid Medicare taxes while working. **Or higher, determined by income.

Medicare Deductibles & Coinsurance14

Part A Deductible
(per benefit period)
Coinsurance, Days 1 – 60$0
Coinsurance, Days 61 – 90$400*
Coinsurance, Days 91+$800**
Part B Deductible (per year)$226***
*Per day of benefit period. **Per each lifetime reserve day after day 90 for each benefit (up to 60 days over your lifetime). ***After deductible is met, you typically pay20% of the Medicare-approved amount for most doctor services.

Health Savings Accounts, High Deductible Health Plans15

HSA Contribution Limit$3,850$7,750$1,000
HDHP Minimum Deductible$1,500$3,000N/A
HDHP Max. Out-of-Pocket Amount$7,500$15,000N/A
ACA Out-of-Pocket Limit for HDHPs$9,100$18,200N/A
*Age 55 or older

Extended Care Coverage Deductibility Limits2

Age (reached prior to close of tax year)Maximum Deduction
for Year
Up to 40$480
40 – 50$890
50 – 60$1,790
60 – 70$4,770
*Premiums for “qualified” extended care policies are tax-deductible to the extent that they, along with other unreimbursed medical expenses (including Medicare premiums), exceed 10% of the insured’s AGI.

















Spectrum Wealth Counsel, doing business as Spectrum Wealth Management, LLC, is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Additional information about Spectrum’s investment advisory services is found in Form ADV Part 2, which is available upon request. The information presented is for educational and illustrative purposes only and does not constitute tax, legal, or investment advice. Tax and legal counsel should be engaged before taking any action. The opinions expressed and material provided are for general information and should not be considered a solicitation for purchasing or selling any security.