What’s going on with Inflation?

Good news from the IRS this week as the tax inflation adjustments for 2023 have been released.  The income tax rates, certain deductions, and limitations are adjusted for inflation EVERY year. Lately, these adjustments have been fairly minimal. However, thanks to this year’s sky-high inflation, the IRS’ increases are particularly generous at about 7% across the board. These adjustments affect the 2023 tax year or the tax returns you will file by April 15^th, 2024.  Here are the tax rate changes. revised standard deduction amounts, and revised limits for 2023.