IRS Implements Positive Changes for Taxpayers: Wider Brackets and Higher Deductions Bring Relief

Corpus Christi, Texas – The Internal Revenue Service (IRS) is unexpectedly bringing some good news for taxpayers filing their federal tax returns this year. Recognizing the recent surge in inflation, the IRS has made two significant changes that should benefit most taxpayers.

Firstly, tax brackets have been expanded. Stacy Trevino, owner of Danny’s Income Tax Service, explained that tax brackets have been adjusted up by a record 7%. This adjustment means that individuals with a relatively stable income could find themselves in a lower tax bracket, resulting in a lower tax rate. Trevino emphasized, “If someone made the same amount as last year, they will see a slightly lower tax bill as they won’t reach that higher tax bracket.”

Additionally, standard deductions have been increased by about 7% to account for inflation. This adjustment allows more of an individual’s income to be excluded from taxes. Trevino highlighted the increase in the “Married Filing Jointly” standard deduction to $27,700. Similar adjustments have been made for those filing as “Single,” “Head of Household,” or “Married Filing Separately.” According to the IRS, nearly 90% of American taxpayers opt for the standard deduction.

However, amidst these positive changes, taxpayers should remain vigilant against potential refund theft. Criminals are becoming increasingly creative in their attempts to steal refunds. If individuals receive a notice from the IRS, seeking assistance in determining whether it is genuine is crucial. Trevino advised, “Taking your notices to someone knowledgeable and contacting the IRS for verification is the best course of action.”

Filing taxes early could also be a prudent step. By providing their information to the IRS promptly, taxpayers can avoid fraudulent tax returns being filed in their name and attempts to steal their money.

In summary, the IRS has responded to the high inflation rates by introducing changes that benefit taxpayers. Wider tax brackets and higher standard deductions aim to alleviate the burden on individuals. Nonetheless, taxpayers must remain cautious to protect themselves from refund theft and consider filing taxes early to safeguard their money.