IRS Raises 2023 Tax Brackets Due To Inflation – Tax Planning
Tax Brackets and Standard Deductions
The Internal Revenue Service (IRS) controls the adjustments of tax brackets and standard deductions, and annually makes tax code adjustments based on the cost of living factors, congressional demands, and inflation. The adjustment for 2023, due to 40-year highs in inflation (with inflation currently sitting at 8.2%), was abnormally high.