More value to adoption tax credit
The tax credit for qualified adoption expenses will have more value in 2022. The maximum allowable credit amount will be $14,890, up from $14,440 for 2021.
A higher gift tax exclusion
If you’ve been lucky enough to give someone a gift that was worth at least five figures, then congratulations! If not, you might not have been interested in the gift tax, and for a good reason.
It’s a tax that a gift-giver owns on the value of a large gift. Smaller gifts are also excluded from this tax. For the year 2022, the amount of that exclusion is $16,000, which is up from $15,000 for 2021.
This only means that if you’ll give someone a gift that is worth less than $16,000, you won’t have to pay the gift tax.
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1 thought on “16 Income Tax Changes Coming in 2023”
Thank you so much for valuable info, especially for seniors.