{"id":26495,"date":"2022-11-29T00:57:38","date_gmt":"2022-11-29T00:57:38","guid":{"rendered":"https:\/\/c1mdevsite.com\/braunability.com\/tax-planning-and-the-standard-tax-deduction-for-2023\/"},"modified":"2022-11-29T00:57:38","modified_gmt":"2022-11-29T00:57:38","slug":"tax-planning-and-the-standard-tax-deduction-for-2023","status":"publish","type":"post","link":"https:\/\/c1mdevsite.com\/mdctraining.ca\/tax-planning-and-the-standard-tax-deduction-for-2023\/","title":{"rendered":"Tax Planning and the Standard Tax Deduction for 2023\u202f\u00a0"},"content":{"rendered":"
\"tax<\/p>\n

With the end of 2022 just around the corner, now is the time to begin tax preparation for\u00a0 2023. It may seem you still have enough time, but the more tax planning you do now, the more money you may be able to save in the future. Although 2022 tax filing deadlines are technically months away, some end-of-year tax decisions can save you money on your 2023 tax return. There may be some ways to slide in some last-minute changes that can reduce your 2022 tax bill. <\/span>\u00a0<\/span><\/p>\n

There is still plenty of time to act before the end of the year, but you shouldn\u2019t delay. The Waters Hardy team<\/a> can assist with your tax preparation and planning if you\u2019re ready to maximize your tax benefits.<\/strong> Learn more about how our expert accounting services can work out a plan for your 2022 finances and start the new year with the best tax strategies.<\/span>\u00a0<\/span><\/p>\n

Optimal planning now ensures optimal savings in the future, but you should know what\u2019s new and what has changed. There are many factors to tax planning that you need to consider. Let\u2019s discover what a standard tax deduction is and what changes are coming for standard deductions in 2023.\u00a0<\/span>\u00a0<\/span><\/p>\n

How Does the Standard Tax Deduction Work?\u202f<\/span><\/b>\u00a0<\/span><\/a><\/h2>\n

\u00a0<\/span>Every year, taxpayers can choose between itemizing deductions or filing for a standard deduction. Itemized deductions are expenses allowed by the IRS that can decrease your taxable income.\u00a0<\/span>\u00a0<\/span><\/p>\n

The standard tax deduction is the number of deductions you can subtract from your income before you begin to owe federal taxes.<\/strong> However, it doesn\u2019t include payroll taxes or state taxes. Taking the standard deduction means you can\u2019t deduct itemized expenses.<\/span>\u00a0<\/span><\/p>\n

When Should You Claim the Standard Deduction<\/span><\/b>\u00a0<\/span><\/h2>\n

\u00a0<\/span>If your standard deduction is less than your itemized deductions, you will probably save money by itemizing your deductions. It might be worth taking the standard deduction, though, if it is more than your itemized deductions.<\/span>\u00a0<\/span><\/p>\n

The standard deduction is usually easier than itemizing and is typically the better deal, and more people choose this option. What you need to know, though, is that the amount for the standard deduction is adjusted annually based on inflation and varies from person to person. It\u2019s important to understand your standard deduction every year to determine if this is the best tax route for you.\u00a0<\/span>\u00a0<\/span><\/p>\n

Changes to Expect for the Standard Deduction in 2023<\/span><\/b>\u00a0<\/span><\/h2>\n

The standard deduction amounts are adjusted annually to account for inflation. Your 2022 standard deduction will be larger than it was in 2021. Therefore, in 2023, the standard deduction will be greater than your 2022 deduction.\u00a0<\/span>\u00a0<\/span><\/p>\n

Determining your standard deduction amount isn\u2019t always straightforward and simple and it can be complicated. There are a variety of factors at play that determine the amount of your standard deduction.\u00a0<\/span>\u00a0<\/span><\/p>\n

Let\u2019s take a closer look at how your standard deduction will be determined in 2022 and how it will differ in 2023.<\/span>\u00a0<\/span><\/p>\n

Standard Deduction for 2022 \u2013 Filed on or before April 18, 2023<\/span><\/i><\/b>\u00a0<\/span><\/h3>\n