turbotax icon
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

New laws

In a nutshell what are the primary items to watch out for in the coming tax year for the middle class ( less than 90,000 per year)

2 Replies
Employee Tax Expert

New laws

Hi elath1169,


Not a lot of changes for tax year 2023.  


You will see an increase in the standard deduction, if you do not itemize;

Standard deduction increases as follows:

  • Filing status of Married Filing Jointly increases by $1,800 to $27,700
  • Filing status of Head of Household increases by $1,400 to $20,800
  • Filing statuses of Single and Married Filing Separately increases by $900 to $13,850

Also, if you have dependents the Child Tax Credit (CTC) remains at 2022 thresholds:

  • Nonrefundable credit
  • $2,000 per child who meets the following requirements:
    • Child is younger than 17 at the end of the year
    • Child is son, daughter, stepchild, foster child,brother, sister, stepbrother, stepsister, grandchild, niece, or nephew
    • Child can be claimed as a dependent
    • Child doesn’t provide more than half of their support
    • Child is U.S. citizen, national, or resident alien
    • Child doesn't file joint tax return
    • Child must have social security number
    • Child must have lived with you for more than half of the tax year
  • Additional Child Tax Credit (ACTC) encompasses the following:
    • Allows taxpayer to receive up to $1,500 of the $2,000 child tax credit as a refund
    • Families must have minimum of $2,500 of earned income to claim ACTC
  • Phase out for both credits is based on modified adjusted gross income (MAGI) as follows:
    • Filing status of Married Filing Jointly phase out begins at $400,000
    • All other filing statuses phase out begins at $200,000
  • Phase out is calculated as $50 reduction in the credit for each $1,000 (or part of $1,000) that MAGI exceeds the phase out amount.

Also there have been changes to the energy efficient home improvement credit;

Maximum value of $1,200 per year for qualified energy efficiency improvements, such as:

  • Exterior windows
  • Doors and skylights
  • Building envelope components


Second, there is a different $2,000 per limit for the equipment cost and installation of new energy-intensive appliances, such as:

  • Heat pumps
  • Heat pump water heaters
  • Biomass stoves and boilers


Third, as part of the $1,200 credit per year, it can cover up to $150 per year for the cost of performing a home energy audit to identify areas of needing energy efficiency improvements.


I hope you find this helpful!



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

New laws

Hi There:


Here's a real good article by Kiplinger which outlines the major changes to 2023, the biggest changes being changes to Income Tax Rates , Capital Gain Rates and energy credits.


2023 Tax law changes 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies