There are some new tax changes being proposed for 2023, which means how much money people have to pay to the government might be changing. Here’s a breakdown of what’s being suggested:

If you make less than $400,000 a year, you won’t have to pay any new taxes.

Families with children could get bigger refunds, which means more money back from the government. The proposed budget would increase the Child Tax Credit to $3,000 per child over age six and $3,600 for per child under six, and families could receive these funds as monthly payments. The Earned Income Credit, which helps lower-income families has also been expanded to individuals without children would be increased and made permanent.

For new homeowners buying a house, you might be able to save around $800 a year in mortgage insurance premiums if you’re a first-time home buyer.

If you’re really rich with over $100 million in wealth, you might have to pay a new 25% minimum tax. This is because right now, rich people can pay lower taxes than some middle-class people, and the government wants to make things more fair.

If you make more than $400,000 a year, you might have to pay higher taxes than before. For example, the top tax rate for single filers making $400,000 or more and married couples making $450,000 or more would be increased to 39.6%.

There’s also a loophole where some wealthy people avoid paying Medicare taxes on certain types of income, and this would be closed. The Medicare tax would be raised from 3.8% to 5%, and the money would go to the Medicare HI Trust fund.

Finally, there’s a “wash sale rule” that currently doesn’t apply to cryptocurrency. This rule prevents investors from claiming a loss if they repurchase the same asset within 30 days. This proposal would apply the rule to cryptocurrency trades, potentially raising $24 billion in revenue for the government.

That’s the scoop on the proposed tax budget for 2023!

This content is provided for informational purposes only and should not be construed as tax, legal, financial, or other professional advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need specific advice.