Here’s How Much Increases To The Standard Deduction Could Save You On Taxes

The Internal Revenue Service today announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2022-38PDF provides details about these annual adjustments.

‍New for 2023

‍The Inflation Reduction Act extended certain energy-related tax breaks and indexed the energy-efficient commercial buildings deduction for inflation beginning with the tax year 2023. For the tax year 2023, the applicable dollar value used to determine the maximum allowance of the deduction is $0.54, increased (but not above $1.07) by $0.02 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent. The applicable dollar value used to determine the increased deduction amount for certain property is $2.68, increased (but not above $5.36) by $0.11 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent.

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