Re:The IRS is increasing the standard deductions for 2023 as...
by teraflop on Tuesday October 25, 2022 @08:02PM
(#33337907)
> Decreasing taxes to fight inflation. We've clearly got the experts in the driver's seat here.
This article is not describing any kind of policy change or decision that was made by the IRS.
The size of the standard deduction is set by a federal law passed by Congress. That law fixed the deduction at $3,000 (for single filers) in 1988, and specified that it should be adjusted for inflation in future years by multiplying by the change in CPI, so that the real value of the deduction stays constant.
The IRS is just doing the arithmetic and updating the forms, as they're legally required to.
This article is not describing any kind of policy change or decision that was made by the IRS.
The size of the standard deduction is set by a federal law passed by Congress. That law fixed the deduction at $3,000 (for single filers) in 1988, and specified that it should be adjusted for inflation in future years by multiplying by the change in CPI, so that the real value of the deduction stays constant.
The IRS is just doing the arithmetic and updating the forms, as they're legally required to.