In a recent announcement by the IRS, the thresholds between tax brackets will be getting a bump, reflecting an awareness of the impacts of inflation Americans have been suffering through this year.
A recent article in Financial Advisor magazinehas outlined the modifications to the structure of income and estate taxes, as well as the Alternative Minimum Tax (AMT). Additionally, the Standard deduction many taxpayers take when preparing their yearly returns are being altered.
While actual tax rates themselves are not changing, the overall effect, all other factors being equal, will be to lessen one's tax obligations, as it will take more income to move a taxpayer into a higher bracket. Also, this can have some implications on financial planning issues like Roth conversions and IRA distribution strategy.
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Your Tax Bracket is Getting the Shift.
