Sure, inflation is causing a lot of price increases, but it may also affect your paychecks next year.
The IRS’s inflation adjustments for 2023 federal tax income brackets could lower the amount of taxes on your checks.
“It is very likely that you would see more in your paycheck starting in January [due to the IRS inflation adjustments, which] tend to result in lower withholding for a given level of income,” Mark Luscombe, principal federal tax analyst for Wolters Kluwer Tax & Accounting told CNN.
Of course, the changes start in 2023 and will not affect your 2022 taxes.
How will you be affected by these changes?