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Standard deduction 2023 (taxes due April 2024)

Filing status                                                           2023 standard deduction


Single                                                                        $13,850.

Married, filing separately                                        $13,850.

Married, filing jointly; qualified widow/er              $27,700.

Head of household                                                  $20,800.


 Deductions for personal exemptions only change the year 2023


Changes to itemized deductions

Taxpayers who choose to itemize deductions may do so by filing Schedule A (Form 1040), Itemized Deductions. Itemized deductions that taxpayers may claim can include:

  • State and local income or sales taxes.

  • Real estate and personal property taxes.

  • Home mortgage interest.

  • Personal casualty and theft losses from a federally declared disaster.

  • Gifts to a qualified charity.

  • Unreimbursed medical and dental expenses that exceed 7.5% of adjusted gross income.

Some itemized deductions, such as the deduction for taxes, may be limited. Taxpayers should review the instructions for Schedule A (Form 1040) for more information on limitations.

Who Must Pay Self-Employment Tax?

You must pay self-employment tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies.

  • Your net earnings from self-employment (excluding church employee income) were $400 or more.

  • You had church employee income of $108.28 or more.


Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.


The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

For 2023, the first $160,200 of your combined wages, tips, and net earnings is subject to any combination of the Social Security part of self-employment tax, Social Security tax, or railroad retirement. 

Form 1099-K, a Form 1099-NEC, Nonemployee Compensation, or any other information return.

Prior to 2022, Form 1099-K was issued for third party networks transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000. The American Rescue Plan Act of 2021 lowered the reporting threshold for third party networks that process payments for those doing business.

Now a single transaction exceeding $600 can require the third party platform to issue a 1099-K. Money received through third party payment networks from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable.

New school year reminder to educators; maximum educator expense deduction is $300 in 2023

WASHINGTON – As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they'll be able to deduct up to $300 of out-of-pocket classroom expenses for 2023 when they file their federal income tax return next year.

Educators can claim this deduction, even if they take the standard deduction. Eligible educators include anyone who is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide who worked in a school for at least 900 hours during the school year. Both public and private school educators qualify.




File Form 1099-MISC for each person to whom you have paid during the year:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.

  • At least $600 in:

    • Rents.

    • Prizes and awards.

    • Other income payments.

    • Medical and health care payments.

    • Crop insurance proceeds.

    • Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.

    • Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.

    • Payments to an attorney.

    • Any fishing boat proceeds.

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.

Specific Instructions for Form 1099-NEC

File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.

  • At least $600 in:

  1. Services performed by someone who is not your employee (including parts and materials)

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