IRS set to increase cost of living adjustment to help offset inflation costs for americans.

NATIONAL NEWS- A proposed change for the IRS is hoping to give cost of living adjustments for millions of Americans inflation continues to make things more expensive.

The cost of living adjustments, also known as COLA, will mean tax brackets will be expanded, allowing Americans to earn more money per year before hitting that next tax bracket, as well as increasing standard deductions.
That means more Americans will be getting less money taken out of their paychecks every month.

“This is the largest adjustment increase in over 40 years, for taxpayers who are single in 23 they are going to see their standard deduction go from 12,950 to 13,850 its a 7 percent increase, and its the same for married,” said CPA at UHY Group Mark Welsh.

Welsh says it’s important to remember getting less taken out per paycheck will lead to less coming back in a tax return.
He also says it’s important to remember these are still the estimated changes, and that these will effect next year’s tax season, not the current one.