Projecting taxes, "subtraction amount"

Forum|Forum|2 years ago
October 25, 2023
2 replies
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Planning for taxes and trying to get the "subtraction amount" used in the IRS tax computation worksheet. For the moment, using last year's number from this form. Can't find the updated "subtraction amount" IRS is using for the coming season. Assume this changes each year. Can I get it now or do I have to wait for IRS to generate the new worksheet?

Ask the Experts - Extension - Sept 2023

Best answer by Terri Lynn

Hi Toole744,

You asked " the "subtraction amount" used in the IRS tax computation worksheet."

Here is a chart with the subtraction amounts for 2023:

c. Married Filing Jointly or Qualifying Surviving Spouse. Use this worksheet to figure the amount to enter on Worksheet 1-3, line 4, if you expect your filing status for 2023 to be Married Filing Jointly or Qualifying Surviving Spouse.
Expected Taxable Income		(a) Enter amount from Worksheet 1-3, line 3*	(b) Multiplication amount	(c) Multiply (a) by (b)	(d) Subtraction amount	(e) Subtract (d) from (c). Enter the result here and on Worksheet 1-3, line 4*
If Worksheet 1-3, line 3* is —
Over	But not over
$0	$22,000		× 10% (0.10)		$0
22,000	89,450		× 12% (0.12)		440.00
89,450	190,750		× 22% (0.22)		9,385.00
190,750	364,200		× 24% (0.24)		13,200.00
364,200	462,500		× 32% (0.32)		42,336.00
462,500	693,750		× 35% (0.35)		56,211.00
693,750	- - - - -		× 37% (0.37)		70,086.00
* If you are using Worksheet 2-5, for column (a) above, use the amount from line 1 or line 14 and enter the result (from column (e)) on line 37 or line 39, as appropriate. If you are using Worksheet 2-6, for column (a) above, use the amount from line 2 or line 3 and enter the result (from column (e)) on line 4 or line 5, as appropriate.

For more information please check out this link:

PUB 505 Section on Tax Computation Worksheet

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user17581364628

Level 5

Hi @Toole744 ,

Happy to help. Can you please provide us with additional information or link to help you resolve your question.

*The subtraction amount that is being referred to is for tax year 2023?

*Additionally, you can use TurboTax estimator tool to calculate your 2023 tax liability , if that is useful.

Terri Lynn

Answer

Level 6

Hi Toole744,

You asked " the "subtraction amount" used in the IRS tax computation worksheet."

Here is a chart with the subtraction amounts for 2023:

c. Married Filing Jointly or Qualifying Surviving Spouse. Use this worksheet to figure the amount to enter on Worksheet 1-3, line 4, if you expect your filing status for 2023 to be Married Filing Jointly or Qualifying Surviving Spouse.
Expected Taxable Income		(a) Enter amount from Worksheet 1-3, line 3*	(b) Multiplication amount	(c) Multiply (a) by (b)	(d) Subtraction amount	(e) Subtract (d) from (c). Enter the result here and on Worksheet 1-3, line 4*
If Worksheet 1-3, line 3* is —
Over	But not over
$0	$22,000		× 10% (0.10)		$0
22,000	89,450		× 12% (0.12)		440.00
89,450	190,750		× 22% (0.22)		9,385.00
190,750	364,200		× 24% (0.24)		13,200.00
364,200	462,500		× 32% (0.32)		42,336.00
462,500	693,750		× 35% (0.35)		56,211.00
693,750	- - - - -		× 37% (0.37)		70,086.00
* If you are using Worksheet 2-5, for column (a) above, use the amount from line 1 or line 14 and enter the result (from column (e)) on line 37 or line 39, as appropriate. If you are using Worksheet 2-6, for column (a) above, use the amount from line 2 or line 3 and enter the result (from column (e)) on line 4 or line 5, as appropriate.

For more information please check out this link:

PUB 505 Section on Tax Computation Worksheet

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer”

Please feel free to reach out with any additional questions and . thank you so much for attending! . Please have an amazing rest of your day!Terri H.. **Say "Thanks," by clicking the thumb icon at the bottom of the post.** Mark the post that answered your question by clicking on "Mark as Best Answer.”.

JohnJ4

Level 2

Toole744 , if you are asking for the Standard deduction amount ( subtraction amount)for 2023 if you are single the amount is $13,850 increased to $15,700 if you are 65 or older. Married filing joint it is $27,700 with an additional $1,500 added to it for each spouse 65 or older. I recommend you use the Turbo Tax tax Estimator for 2023 to help with estimating your 2023 taxes.