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.