Your Villa Magazine - Moreno Valley - Perris - January-March 2024

How Tax Brackets Work Based on your income and filing status, you determine that a portion of your income is in the 22% tax bracket. That doesn’t mean you are actually going to pay a 22% rate on your taxable income. It only means that a portion of your income will be taxed at a 22% rate. 7e currently have seven different tax brackets ranging from £0% ‡ 3Ç%. If someone is single and their taxable income is f40,x2x, they will pay a £0% rate on the first f££,000 of their income and a £2% tax rate on income that only exceeds f££,00£ to f44,Ç2x. Income over 0 $11,001 $44,726 $95,376 $182,101 $231,251 $346,875 But not over $ 11,000 $ 44,725 $ 95,375 $182,100 $231,250 $346,875 and over But not over $22,000 $89,450 $190,750 $364,200 $462,500 $693,750 and over Income over 0 $22,001 $89,451 $190,751 $364,201 $462,501 $693,750 Married Filing Jointly or Qualifying Widow Single Filers 2023 Federal Tax Brackets Married Filing Separate But not over $15,700 $59,850 $95,350 $182,100 $231,250 $578,100 and over Income over 0 $15,701 $59,851 $95,351 $182,101 $231,251 $578,100 Head of Household Income over 0 $11,001 $44,726 $93,376 $182,101 $231,251 $346,875 But not over $ 11,000 $ 44,725 $ 93,375 $182,100 $231,250 $346,875 and over Tax Rate 10% 12% 22% 24% 32% 35% 37% You May Want to File a Tax Return... (even if you are not required to) There are several reasons why you may want to file a tax return even if you do not meet the minimum income requirements. • If you had taxes withheld from your pay, you may want to file a tax return to receive a tax refund. • If you qualify, you may file a return to receive the refundable Earned Income Tax Credit. • If you have a qualifying child, but owe no tax, you can file to be refunded the Additional Child Tax Credit. • If you have self-employment income in excess of $400. • If you qualify, you must file to claim the Credit for Prior Year Minimum Tax. • If you overpaid estimated tax or applied to a prior year overpayment to this year, you must file to receive the refund. • If you are claiming education credits, you may file a tax return to receive the refundable portion of the American Opportunity Credit. Do I Need to File a Tax Return? Whether or not you are required to file a federal income tax return depends on several things: your filing status, your age,your income, your dependent status, and whether you meet a few other special requirements. Consult the charts below to find out if you are required to file a tax return, then read on to find out why you may want to file a tax return even if you don’t have to. Minimum Income Requirements to File a Federal Income Tax Return MORE FOR 2023! Federal Standard Tax Deduction for 2023 Filing Status Standard Deduction Single $13,850 Head of Household $20,800 Married (Filing Separately) $13,850 Married (Filing Jointly) $27,700 Qualifying Widow(er) $27,700 If you choose not to itemize your deductions on your federal tax return, you can still claim the standard deduction. People age 65 or older, and people who are legally blind receive an additional standard deduction. The standard deduction is calculated by adding the person’s standard deduction (based on their filing status), plus the additional amount. Additional standard deduction amounts for 2023 are: • $1,850 for single or head of household • $1,500 for married filing jointly, married filing separately, or qualifying widow If you Filing Status is and at the end of 2022 you were... THEN file a return if your gross income was at least...** Single Under 65 65 or older $13,850 $15,700 Married Filing Jointly Under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses) $27,700 $29,200 $30,700 Married Filing Separately (see the instructions for Form 1040) any age $5 Head of household (see the instructions for Form 1040) under 65 65 or older $20,800 $22,650 Qualifying Widow(er) (see the instructions for Form 1040) under 65 65 or older $27,700 $29,200 Honesty and truthfulness have always been the best guidelines for preparing your income taxes. That doesn’t mean that you should not take advantage of every tax deduction to which you are entitled. Every year we see people who, regretfully, are going through a very difficult time with the IRS. This is usually caused by a previous tax preparer that had overstated deductions on the tax return. Once you sign and file the tax return, you are responsible for the information on the return. Serving Moreno Valley with integrity since 1984. We look forward to serving you~ Tax Comp The cost, time spent, and emotional stress in resolving the problems can be devastating. So take the high road when you choose someone to prepare your taxes. California requires all tax preparers to be registered and bonded if they charge a fee. Which tax preparers are legal? Go to www.ctec.org to see if your preparer is currently registered. Our Community --- Filled with People Doing it the Right Way TAX COMP | 23025 ATLANTIC CIRCLE, SUITE D, MORENO VALLEY, CA 92553 | www.TaxComp.net | 951.486.9862 | admin@taxcomp. net | 19