• LinkedIn
  • Facebook
  • (512)-334-6200
  • Client Login
Physician’s Resource Services
  • Services
    • Insurance
      • Disability Insurance
      • Life Insurance
      • Business Overhead Insurance
      • Long-Term Care Insurance
    • Tax
      • Tax Preparation
      • Tax Planning
      • Business Formation
    • Financial Planning
      • Retirement Planning
      • Debt Management
      • Student Loans
      • Estate Planning
      • Succession Planning
    • Investment Management
      • Goal Planning
      • Allocation Analysis
      • Ongoing Analysis
  • Who We Help
    • GME Programs
    • Residents & Fellows
    • Practicing Physicians
  • Resources
    • Physician Wellness
    • Defining DI
  • About Us
    • Meet The Team
    • Partners
    • Careers
    • News & Articles
  • Schedule Consult
  • Menu Menu

Let’s Get to the Bottom of Inflation and Taxes

With the IRS adjusting tax rates across different income brackets for inflation, the implications of these changes can be far-reaching. In this blog post, we’ll explore how this affects individuals filing taxes in 2023. With a better understanding of inflation and taxes, you’ll have an easier time navigating this year’s tax season.

Understanding Inflation Before the 2023 Tax Season

Much to the chagrin of many Americans, inflation rose 9.1% in 2022. As prices rose, it became more difficult to purchase everyday goods like groceries and gas. It also caused housing prices to escalate. The median monthly rent for an apartment rose from $1,889 in December 2021 to $1,979 in December 2022, according to Rent.com’s annual rent report. Across the board, this spike in inflation made it more difficult for many Americans to go about their daily lives. The effects of inflation don’t stop there—they also impact your 2023 taxes.

Why Inflation Rose So Sharply

While there are many factors at play, it’s clear that the COVID-19 pandemic was one of the driving forces. The global health crisis created massive supply chain issues, such as weeks-long port backlogs and shortages of essential goods. These drastically affected both supply and consumer demand, causing prices throughout the country to skyrocket.

The Inflation Tax Adjustment: How Your Tax Rates Change

For Individual Single Taxpayers

Tax RateFor Tax Year 2023For Tax Year 2022
10%$0 to $10,275$0 to $9,950
12%$10,275 to $41,775$9,950 to $40,525
22%$41,775 to $89,075$40,525 to $86,375
24%$89,075 to $170,050$86,375 to $164, 925
32%$170,050 to $215,950$164,925 to $209,425
35%$215,950 to $539,900$209,425 to $523,600
37%$539,900 or more$523,600 or more

For Married Couples Filing Jointly

Tax RateFor Tax Year 2023For Tax Year 2022
10%$0 to $20,550$0 to $19,900
12%$20,550 to $83,550$19,900 to $81,050
22%$83,550 to $178,150$81,050 to $172,750
24%$178,150 to $340,100$172,750 to $329,850
32%$340,100 to $431,900$329,850 to $418,850
35%$431,900 to $647,850$418,850 to $628,300
37%$647,850 or more$628,300 or more

Want to learn how to protect your income from inflation and achieve your financial goals? Explore our blog to find out.

Learn More

How Inflation Affects Your Tax Returns

Although inflation makes it more difficult to put money away and maintain financial stability, you can still navigate the 2023 tax season with poise and confidence. Here are a few key tax areas that have changed with inflation.

The Standard Deduction

Taxpayers can choose between itemized deductions or the standard deduction when filing their taxes. Typically, people file for a deduction that requires them to pay the least. This tax season, the standard deduction is rising by more than 3% in response to inflation. Here’s how that plays out for single taxpayers and married individuals filing jointly:

  • For single taxpayers: $12,500 to $12,950
  • For married couples filing jointly: $25,100 to $25,900

401(k) and IRA Contribution Limits

Inflation also affects how much money you can put into your 401(k) and IRA accounts. For the most part, inflation tax adjustments allow you to add more money to these accounts each year. This is especially advantageous because these reduce your taxable income.

Health Savings Accounts

Health savings accounts (HSAs) allow individuals to set aside money to pay for qualified health expenses. The funds contributed to your HSA are not subject to federal taxes. In addition, the tax-deductible amount is adjusted for inflation—contribution limits will rise as inflation increases.

Child, Adoption, and Earned Income Tax Credits

Here are a few more points of intersection between inflation and taxes:

  • Child Tax Credit: The child tax credit helps families with qualifying children secure a tax break. This tax credit is not adjusted for inflation, but the refundable portion of it is. This year it’s increasing from $100 to $1,500.
  • Adoption Credit: The adoption credit eases the tax burden on parents that have adopted children or are in the process of adopting children. This year, the maximum credit has increased from $14,440 to $14,890 due to inflation.
  • Earned Income Tax Credit (EITC): The EITC helps lower-income families ease their financial burden. Factors such as maximum credit amounts and investment income limits adjust for inflation, making it easier for these families to remain financially stable as the cost of living increases.

Learn How to Navigate the 2023 Tax Season With Physician’s Resource Services

If you’re a physician or healthcare professional, navigating tax season can be a challenge. Fortunately, Physician’s Resource Services is here to help. We work with physicians and help them develop a comprehensive tax planning strategy that reduces tax liability.

If you need assistance this tax season, give us a call.

This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.

Share This Post

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share on Reddit
  • Share by Mail

Related Postings

Image of a bank note torn in half to represent an inflating chart.

How Inflation Impacts Taxes

Taxes
Read more
March 15, 2023
https://physiciansrs.com/wp-content/uploads/2023/03/Image-of-a-bank-note-torn-in-half-to-represent-an-inflating-chart..jpg 1250 2000 AbstraktMarketing /wp-content/uploads/2022/03/prs-logo-color.png AbstraktMarketing2023-03-15 09:00:002023-03-08 16:38:36How Inflation Impacts Taxes
Image of a medical professional using a calculator and laptop to do their taxes.

Understanding Tax Strategies for Doctors

Taxes
Read more
March 10, 2023
https://physiciansrs.com/wp-content/uploads/2023/03/Image-of-a-medical-professional-using-a-calculator-and-laptop-to-do-their-taxes..jpg 1250 2000 AbstraktMarketing /wp-content/uploads/2022/03/prs-logo-color.png AbstraktMarketing2023-03-10 09:00:002023-03-08 16:37:48Understanding Tax Strategies for Doctors
Image of a couple discussing insurance options.

Do I Need Life Insurance?

Insurance, Physician Resources
Read more
February 23, 2023
https://physiciansrs.com/wp-content/uploads/2023/02/Image-of-a-couple-discussing-insurance-options..jpg 1250 2000 AbstraktMarketing /wp-content/uploads/2022/03/prs-logo-color.png AbstraktMarketing2023-02-23 09:00:002023-02-16 22:56:56Do I Need Life Insurance?

Categories

  • Financial Planning
  • Insurance
  • Physician Resources
  • Taxes
  • Uncategorized

Contact Us

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

“You dedicate your life to helping patients with their physical health; Let us help you with your financial health.”

Our Services

Insurance

Tax Service

Financial Planning

Investment Management

Who We Help

Locations

AUSTIN – (512)-334-6200
6500 River Place Blvd, Bldg 7, Suite 250 Austin, TX 78730

HOUSTON
6414 Fannin, Suite G-115 Houston, TX 77030

FORT WORTH
John Peter Smith Hospital 1500 South Main St. Room 02-0181 Fort Worth, TX 76104

GALVESTON
Rebecca Sealy Building 404 St Mary’s Blvd Suite 5.408 Galveston, TX 77550

 
 
This site may contain links to articles or other information that may be on a third-party website. Advisory Services Network, LLC is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.

Advisory services offered through PRS Investment Advisors, a Member of Advisory Services Network, LLC. Tax services and insurance products offered through Physician’s Resource Services. Advisory Services Network, LLC and Physician’s Resource Services are not affiliated.

Website by Abstrakt Marketing Group © 2022
  • Privacy Policy
  • Sitemap
  • Linkedin
  • Facebook
Scroll to top

Chris Fullbright – FINANCIAL ADVISOR

Chris brings experience in financial services and the perspective of a successful entrepreneur who has launched several businesses. With over a decade in the industry, he has served as both an advisor and in a management role coaching new advisors. Chris attended the University of Georgia and Texas State University and graduated with a Bachelor of Applied Arts and Sciences.

He currently holds many financial services licenses and designations including FINRA Group One, Series 6, Series 63, Series 65, Series 7, ARPC, and Certification in Long Term Care (CLTC). In his free time he enjoys being involved in the local community through organizations such as Comfort Crew for Military Kids. Chris is also an active member of Austin Christian Fellowship Church, and enjoys spending time there as well as reading, fishing, and going to sporting events. He is happily married to Monique with two wonderful sons. In addition to serving physicians, Chris specializes in working with special needs families.

Kevin Burris – PARAPLANNER

Kevin received his BA and MBA from Indiana University, earned the Certified Financial Planner (CFP) designation from the University of Georgia, and Retirement Income Certified Professional (RICP) designation from the American College. Kevin is looking forward to helping physicians live their best life. Kevin enjoys spending time on the lake with his wife, playing golf, and watching Indiana University sports.

Michael Kohles – AGENT

Michael attended Lake Michigan College and Siena Heights University, graduating magna cum lade with a Bachelor of Business Administration, with a major in Finance and minor in Marketing. Michael has been in the financial services industry since 2015 and has experience with multiple insurance verticals. Michael is excited to help physicians achieve their financial goals by providing insurance solutions. Michael is married to Erin and has 4 children. Michael also enjoys reading, golfing, playing poker, learning, and traveling.

Erin Kohles – UNDERWRITING PROCESSOR

Erin supports our advisors and clients during the insurance underwriting process in multiple ways. On a given day, she helps by processing applications, tracking and following up on open cases, and answering client questions. She appreciates the part she plays in helping clients prepare for the future, and she strives to make the process as simple and efficient as possible.

Erin has been in the insurance industry for two years and brings with her six and eight years of experience in accounting and quality control, respectively. She graduated from Ball State University and has her life & health and property & casualty insurance licenses. In her free time, she enjoys cheering on her two boys who play basketball, soccer, and baseball; traveling with her husband; and playing with their Yorkie, Mingo.

Gabriela Chavez – ANALYST

Gabriela supports PRS’s advisors and client services team in a variety of ways, including updating our planning software, communicating with clients, and helping develop financial plans. Gabby sees it as a privilege to assist the hard-working, talented clients PRS serves, and one of her favorite things about her role is the opportunity to continually learn and grow alongside our team.

Gabby is currently double-majoring in accounting and finance at the University of the Incarnate World in San Antonio, and she plans to sit for her Certified Financial Planning exam in the fall of 2022. Before transferring to UIW, she attended the University of Texas Rio Grande Valley in Edinburg, Texas. Gabby was born in Germany and is Mexican American. She loves to travel and has visited 11 different countries. She has a five-year-old pug named Penny.

Erin Anderson – CERTIFIED PUBLIC ACCOUNTANT

As a certified public accountant, Erin is a valuable part of our tax division at PRS. She enjoys working with our advisors to develop tax-efficient strategies, and she strives to provide clarity for every client she serves. Erin started her career as an accountant after graduating from Oklahoma State University in 2012 with a master’s degree. She earned her CPA license in 2018. Erin and her husband have two little boys, and they love spending time outdoors as a family and watching OSU football.

Alex Simmons – BUSINESS DEVELOPMENT

Alex oversees Business Development at Physician’s Resource Services. She works with each department to assist in continually improving PRS so we remain a leading competitor in the industry. Alex graduated from Texas Tech University with a Bachelor of Business Administration in Energy Commerce. She is a Texas native who loves to spend her free time traveling and taking her pup, Teddi, to the dog park.

Karli Allen – PARAPLANNER

Karli brings four years of financial services industry experience with her to Physician’s Resource Services. As our firms paraplanner, Karli assists in on boarding new financial planning clients, gathering financial data, and meeting preparation. She holds FINRA Series 6, Series 63, and Series 65 licenses along with her insurance license. Karli is a graduate of The Master’s University in Santa Clarita, CA, and has a business degree with emphases in accounting, finance, and management. She and her husband, Jamisen, recently moved from Southern California and live in Leander, TX. Outside of the office, Karli enjoys photography, traveling, and exploring new coffee shops in the Austin area.

Jennifer Khan- UNDERWRITING SPECIALIST

Jennifer is an Underwriting Specialist at Physician’s Resource Services, with an extensive background in customer service and administration. Jennifer grew up in Texas, graduated from Southeast Missouri State University with a BFA in Theatre, and spent six years in Chicago performing sketch and improv. She is a graduate of the Conservatory Program at The Second City and iO Chicago. Jennifer and her husband, Qamar, moved to Texas with their dachshund mix, Dobby, to be closer to family, sunshine, and good BBQ.

Cheryl Breeden – OFFICE MANAGER

Cheryl is the Business Manager for the firm and a licensed service assistant. She graduated from the University of Texas at Austin with a Bachelor’s Degree in Business Administration. She has years of experience in the areas of process management, customer service, benefits, and insurance. Cheryl has three girls — Ashley, Hannah, & Olivia. She brings this experience to our firm where she manages the underwriting and service process. She also manages the business operations for the firm.

John C. Jackson IV – ASSOCIATE FINANCIAL CONSULTANT

John is an agent from Austin, TX, a graduate of Westlake High School and The University of Texas at Austin, with a Bachelor’s Degree in Economics and a Minor in Business Administration. While at UT, John was a 2-Time Captain and 4-Time All-Conference performer for the men’s lacrosse team. While away from the office, John coaches with the Westlake Youth Lacrosse program and volunteers with Austin’s Young Men’s Business League, and Austin Sunshine Camps.

Paul Smith, CFP® ChFC® MSFS – FINANCIAL ADVISOR

Paul has helped his clients in financial, business, and estate planning for over 10 years. Paul is a graduate of Texas State University, with a Bachelor’s Degree in Psychology. He has also completed the extensive studies necessary to earn the Certified Financial Planners (CFP®) and Chartered Financial Consultant (ChFC®) designations. Paul is actively involved in the community through his volunteer work and service on Community Action Board for the Helping Hand Home for Children. Paul is married to Heather and they have two children, Nyla and Hazel.

Richard Cunningham – MANAGING DIRECTOR

For 30 years, Richard has been helping clients reach their financial goals with sincerity and integrity. He works with GME program administrators, individual physicians and their families to help doctors achieve financial security. Richard is a graduate of the University of Texas at Austin, with a Bachelor’s Degree in Economics. He studied in Paris at the Sorbonne. Richard supports numerous charitable organizations, is actively involved in Austin Recovery, and he participates in the Leukemia Lymphoma Society as a survivor of CML. Richard is married to Adrienne with two children, Raven and Coates.