A federal tax code change means more money – says the office of the Governor, as the IRS announces adjustments for the tax year 2023.
PNC’s Damen Michael has the story.
For those who haven’t been keeping up with the rising inflation rates across the nation, with the new IRS-adjusted tax brackets that were announced taxpayers might be seeing lower tax deductibles this coming year.
According to the IRS in a statement released to ABC News —- Tax brackets will increase by about 7% in an attempt to counter rapid inflation.
The updated brackets would allow different taxpayers to enter lower brackets making them eligible for a lower tax reduction.
One of the highlights of changes to revenue procedures is the standard deduction adjustment. The standard deduction rose to $13,850 for 2023 an increase of $900 for single taxpayers and married individuals filing separately, married couples filing jointly rose to $27,700 which increased by $1,800, and lastly head of households rose to $20,800 which was increased $1,400 for the tax year 2022.
Governor Lou Leon Guerrero says that the federal tax code changes would benefit working families will be able to take home more of their hard-earned dollars and this will help with the cost of living.
She added that this is the largest adjustment to deductions since 1985.
Lt. Governor Josh Tenorio said that Guam residents receiving Social Security will see a historic 8.7% jump in payments starting January which is the largest increase in 40 years. The maximum Earned Income Tax Credit will also go up from $6,935 to $7,430.
Reporting for the Pacific News Center
I’m Damen Michael