Inflation-related tax changes…

**High Inflation Brings Changes to Your Tax Bill**
**Tax brackets, 401(k) contribution limits, estate and gift tax thresholds expected to get biggest inflation adjustments in decades**
**By Ashlea Ebeling, The Wall Street Journal, Sept. 14, 2022**

**The tax-provision adjustments are tied to an alternate inflation measure called the chained consumer-price index, which takes into account the substitutions shoppers make as costs rise. The average of the chained CPI from September 2021 to August 2022 is used to calculate the 2023 adjustments, which the IRS will announce in October or November. These ultimately affect tax returns for the 2023 tax year filed in early 2024....**

**Tax-bracket break points will all rise about 7% from tax year 2022, compared with about 3% last year, which was the largest increase in four years...**

**The Social Security wage base tax level is estimated to increase 5.5% from $147,000 to $155,100 in 2023, according to the 2022 Social Security Trustees Report.**

**The standard deduction for married couples is expected to be $27,700 for 2023, up from $25,900 this year, and $13,850 for individuals, up from $12,950....**

**The federal estate-tax exclusion amount, what an individual can shelter from estate taxes, is $12.06 million this year. It is expected to increase to $12.92 million for 2023, meaning a married couple could shelter nearly $26 million from estate tax with little planning.**

**The maximum contribution amount for an individual retirement account is expected to jump to $6,500 for 2023. The annual limit on tax-free gifts is expected to climb from $16,000 this year to $17,000 for 2023. ...** [end quote]……