2024 Tax Preparer Guide: Essential Updates for Navigating 2023 Tax Returns

Filing Deadlines for 2023 Tax / Information Returns

Type of Return (calendar year)	Due Date	Extended Due Date	Notes
To Employer – Form W-2*	January 31, 2023	1 non-automatic 30-day extension	Due date for providing W-2 to employees and to SSA.
To Recipient – Form 1099-NEC**	January 31, 2023	1 non-automatic 30-day extension	For reporting non-employee compensation.
To Recipient – Form 1099-MISC***	January 31, 2023	1 non-automatic 30-day extension	For reporting all other payments.
Partnerships, LLCs – Form 1065****	March 15, 2023	September 15, 2023	Also the due date for Schedule K-1, K-2 and K-3 that entity must provide to equity holders.
S Corporations – Form 1120S****	March 15, 2023	September 15, 2023	Also the due date for Schedule K-1, K-2 and K-3 that entity must provide to equity holders.
Estates and Trusts – Form 1041	April 18, 2023	September 30, 2023	–
FBAR – FinCEN Form 114	April 18, 2023	October 16, 2023	–
Corporations – Form 1120	April 18, 2023	October 16, 2023	–
Individuals – Form 1040*****	April 18, 2023	October 16, 2023	April 17, 2023 is Emancipation Day in D.C., a federal holiday and Patriot’s Day for taxpayers living in Maine or Massachusetts.
Exempt Organizations – Forms 990	May 15, 2023	November 15, 2023	–
Employee Benefit Plans – Form 5500	July 31, 2023	October 16, 2023	–

2023 Standard Mileage Rates

Purpose	Rate (cents per mile)	Effective Date	Additional Notes
Business	65.5	Travel on or after Jan. 1, 2023	–
Charitable	14.0	Travel on or after Jan. 1, 2023	–
Medical and Moving*	22.0	Travel on or after Jan. 1, 2023	*For tax years 2018-2025, moving mileage may be deducted only by active duty members of the Armed Forces of the United States.

2023 Corporate Tax Rate Schedule

All taxable years beginning on or after Jan. 1, 2018 If Taxable Income Is: Over $0 The Tax Is: 21% of the taxable income

2023 Individual Tax Rate Schedules

Married Individuals Filing Joint Returns and Surviving Spouses

Taxable Income Range	Tax Due
Not over $22,000	10% of the taxable income
Over $22,000 to $89,450	$2,200.00 plus 12% of excess over $22,000
Over $89,450 to $190,750	$10,294.00 plus 22% of excess over $89,450
Over $190,750 to $364,200	$32,580.00 plus 24% of excess over $190,750
Over $364,200 to $462,500	$74,208.00 plus 32% of excess over $364,200
Over $462,500 to $693,750	$105,664.00 plus 35% of excess over $462,500
Over $693,750	$186,601.50 plus 37% of excess over $693,750

Heads of Households

Taxable Income Range	Tax Due
Not over $15,700	10% of the taxable income
Over $15,700 to $59,850	$1,570.00 plus 12% of excess over $15,700
Over $59,850 to $95,350	$6,868.00 plus 22% of excess over $59,850
Over $95,350 to $182,100	$14,678.00 plus 24% of excess over $95,350
Over $182,100 to $231,250	$35,498.00 plus 32% of excess over $182,100
Over $231,250 to $578,100	$51,226.00 plus 35% of excess over $231,250
Over $578,100	$172,623.50 plus 37% of excess over $578,100

Unmarried Individuals (Other than Surviving Spouses and Heads of Households)

Taxable Income Range	Tax Due
Not over $11,000	10% of the taxable income
Over $11,000 to $44,725	$1,100.00 plus 12% of excess over $11,000
Over $44,725 to $95,375	$5,147.00 plus 22% of excess over $44,725
Over $95,375 to $182,100	$16,290.00 plus 24% of excess over $95,375
Over $182,100 to $231,250	$37,104.00 plus 32% of excess over $182,100
Over $231,250 to $578,125	$52,832.00 plus 35% of excess over $231,250
Over $578,125	$174,238.25 plus 37% of excess over $578,125

Married Individuals Filing Separate Returns

Taxable Income Range	Tax Due
Not over $11,000	10% of the taxable income
Over $11,000 to $44,725	$1,100.00 plus 12% of excess over $11,000
Over $44,725 to $95,375	$5,147.00 plus 22% of excess over $44,725
Over $95,375 to $182,100	$16,290.00 plus 24% of excess over $95,375
Over $182,100 to $231,250	$37,104.00 plus 32% of excess over $182,100
Over $231,250 to $346,875	$52,832.00 plus 35% of excess over $231,250
Over $346,875	$93,300.75 plus 37% of excess over $346,875

Note: The 20% deduction for qualified business income passed through to an individual from a pass-through entity reduces the individual’s effective tax rate. This applies to all the above categories.

2023 Social Security and Self-Employment Tax Limits

Social Security

6.2% OASDI wage base $160,200 1.45% HI wage base* no limit *Additional 0.9% Medicare Tax applies for wages exceeding $200,000 for Single or Head of Household, $250,000 for Married Filing Jointly, and $125,000 for Married Filing Separately.

Self-Employment Tax (SECA)

12.4% OASDI earnings base $160,200 2.9% HI wage base* no limit

**Additional 0.9% Medicare Tax applies for wages and self-employment income exceeding $200,000 for Single or Head of Household, $250,000 for Married Filing Jointly, and $125,000 for Married Filing Separately.

2023 Alternative Minimum Tax

AMT Exemption Amounts (§55(d)(1)) for 2023

Filing Status	AMT Exemption Amount
Married Filing Jointly	$126,500
Single/Head of Household	$81,300
Married Filing Separate Returns	$63,250
Estates and Trusts	$28,400

Excess Taxable Income Above Which 28% Rate Applies (§55(b)(1)) for 2023

Filing Status	Income Above Which 28% Rate Applies
Married Filing Jointly, Single / Head of Household, Estates and Trusts	$220,700
Married Filing Separate Returns	$110,350

AMT Exemption Phaseout Amounts (§55(d)(3)) for 2023

Filing Status	Phaseout Range
Married Filing Jointly	$1,156,300 – $1,662,300
Single/Head of Household	$578,150 – $903,350
Married Filing Separate Returns	$578,150 – $831,150
Estates and Trusts	$94,600 – $208,200

2023 Standard Deduction

Filing Status	Standard Deduction Amount
Married Filing Jointly and Surviving Spouses	$27,700
Heads of Households	$20,800
All Other Taxpayers	$13,850

Additional Amount for Aged or Blind (2023)

Situation	Additional Deduction Amount
Aged or Blind	$1,500 for each
Aged or Blind if Unmarried and Not a Surviving Spouse	$1,850

2023 Personal Exemption

Personal Exemption Amount $0

2023 Deduction For Qualified Business Income From Pass-Through Entity

Subject to certain limitations, for tax years 2018 through 2025, individuals, estates, and trusts may deduct up to 20% of qualified business income they receive from sole proprietorships and pass-through entities (such as partnerships, limited liability corporations, and S corporations) in which they own an interest. The remaining income (after the 20% deduction) is taxed at the individual’s, estate’s, or trust’s regular income tax rate. QBI Deduction Rate 20%

2023 First-Year Expensing Limits

Description	Amount
§179 Expensing Limit	$1,160,000
§179 Property Cost Phaseout Begins	$2,890,000

2023 Long-Term Capital Gains and Qualified Dividends

2023 Long-Term Capital Gains Rate for Single

Capital Gains Rate	Income Range
0%	$0 to $44,624
15%	$44,625 to $492,299
20%	$492,300 or more

2023 Long-Term Capital Gains Rate for Married Filing Jointly* or Surviving Spouse

Capital Gains Rate	Income Range
0%	$0 to $89,249
15%	$89,250 to $553,849
20%	$553,850 or more

2023 Long-Term Capital Gains Rate for Head of Household

Capital Gains Rate	Income Range
0%	$0 to $59,749
15%	$59,750 to $523,049
20%	$523,050 or more

2023 Long-Term Capital Gains Rate for Married Filing Separately

Capital Gains Rate	Income Range
0%	$0 to $44,624
15%	$44,625 to $276,899
20%	$276,900 or more

2023 Estates and Trusts Tax Rate Schedules

Taxable Income Range	Tax Calculation
Not Over $2,900	10% of the taxable income
Over $2,900 but not over $10,550	$290.00 plus 24% of the excess over $2,900
Over $10,550 but not over $14,450	$2,126.00 plus 35% of the excess over $10,550
Over $14,450	$3,491.00 plus 37% of the excess over $14,450

Note: The 20% deduction for qualified business income passed through to an estate or trust reduces the estate’s or trust’s effective tax rate.

Estate and Gift Tax Rates for Decedents Dying and Gifts Made in 2022 and 2023

Taxable Amount Over	Taxable Amount Not Over	Tax on Amount in 1st Column	Rate of Tax on Excess Over Amount in 1st Column
$0	$10,000	$0	18% of the taxable amount
$10,000	$20,000	$1,800 plus	20% of the excess over $10,000
$20,000	$40,000	$3,800 plus	22% of the excess over $20,000
$40,000	$60,000	$8,200 plus	24% of the excess over $40,000
$60,000	$80,000	$13,000 plus	26% of the excess over $60,000
$80,000	$100,000	$18,200 plus	28% of the excess over $80,000
$100,000	$150,000	$23,800 plus	30% of the excess over $100,000
$150,000	$250,000	$38,800 plus	32% of the excess over $150,000
$250,000	$500,000	$70,800 plus	34% of the excess over $250,000
$500,000	$750,000	$155,800 plus	37% of the excess over $500,000
$750,000	$1,000,000	$248,300 plus	39% of the excess over $750,000
$1,000,000	–	$345,800 plus	40% of the excess over $1,000,000

Note: The mandatory application of the estate and gift tax unified credit to the tax imposed on taxable amounts up to the applicable exclusion amount effectively results in estate and gift taxes being imposed at a flat rate of 40% on any taxable amounts exceeding the basic exclusion amount of $12,920,000 for 2023.

2023 Applicable Exclusion Amount for Estate and Gift Tax

Year of Transfer	Applicable Exclusion Amount	Credit Amount
2023	$12,920,000 basic exclusion amount	$5,113,800

2023 Gift Tax Annual Exclusion

Year of Transfer	Applicable Exclusion Amount
2023	$17,000

Employer Plans (2023)

Deferral Limits for Plans

Plan Type	Limit
§401(k)	$22,500
§403(b)	$22,500
§457	$22,500
SIMPLE	$15,500

Catch-Up Contributions for Participants Age 50 or Older

Plan Type	Limit
Other Than SIMPLE Plans	$7,500
SIMPLE Plans	$3,500

Other Limits

Description	Limit
Qualified Plans – Annual Compensation Limit	$330,000
Defined Benefit Maximum Annual Benefit*	$265,000
Defined Contribution — Maximum Annual Addition	$66,000
“Key Employee” in Top-Heavy Plan	$215,000
To Determine Maximum Account Balance in ESOP Subject to 5-Year Distribution Period	$1,330,000
“Highly Compensated Employee” Threshold	$150,000
To Determine Additional Account Balance Increments for ESOP Subject to 5-Year Distribution Period	$265,000
SEP Compensation Threshold for Participation	$750
Definition of “Control Employee” for Fringe Benefit Valuation (Reg. §1.61-21(f)(5)(i))	$130,000
Definition of “Control Employee” for Fringe Benefit Valuation (Reg. §1.61-21(f)(5)(iii))	$265,000

IRAs (2023)

Traditional IRAs

Description	Range or Limit
Contribution Limit	$6,500
Catch-Up Contribution for Participants Age 50 or Older	$1,000
Deduction Phase-Out Range for Married Filing Jointly and Participant in Employer Plan	$116,000-$136,000
Deduction Phase-Out Range for Married Filing Jointly and Spouse in Employer Plan	$218,000-$228,000
Deduction Phase-Out Range for Single or Head of Household and in Employer Plan	$73,000-$83,000

Roth IRAs

Description	Range or Limit
Contribution Limit	$6,500
Catch-Up Contribution for Participants Age 50 or Older	$1,000
Contribution Phase-Out Range for Married Filing Jointly	$218,000-$228,000
Contribution Phase-Out Range for Married Filing Separately	$0-$10,000
Contribution Phase-Out Range for Single or Head of Household	$138,000-$153,000

*Note: For a participant who separated from service before January 1, 2023, the limitation for defined benefit plans under I.R.C. §415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2022, by 1.0833.

2023 Interest rates

Interest rates charged by the Internal Revenue Service will be increasing Oct. 1, 2023. For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily. Other charges include:

8% for overpayments (payments made in excess of the amount owed), 7% for corporations.
5.5% for the portion of a corporate overpayment exceeding $10,000.
8% for underpayments (taxes owed but not fully paid).
10% for large corporate underpayments.

For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points.

2023 Foreign Earned Income

For tax year 2023, the maximum foreign earned income exclusion is the lesser of the foreign income earned or $120,000 per qualifying person.