As the 2023 filing season is quickly approaching, we would like to remind you of important tax changes that will take effect.
Standard Deduction
The standard deductions are increasing based on the federal law; beginning January 1, 2023, from:
- From $12,950 to $13,850 for single and married/registered domestic partner filers filing separately;
- From $19,400 to $20,800 for head of household filers;
- From $25,900 to $27,700 for married/registered partners filing jointly and qualifying widow(er) with dependent child(ren) filers;
- An updated worksheet is available for use by dependent filers.
Additional Standard Deduction: If born before January 2, 1959, or blind, an additional standard deduction of $1,500 ($1,850 if single or head of household) is allowed.
DC Earned Income Tax Credit
- Beginning January 1, 2023, individuals who reside in the District of Columbia but are not citizens or resident aliens, may claim the DC Earned Income Tax Credit.
- For the tax year 2023, if the amount of the DC EITC allowed is $1,200 or more, the entire amount of the credit shall be paid to the individual in 12 equal monthly payments.
- The investment income test is increased from $10,300 to $11,000.
- For EITC Without Qualifying Children the maximum credit amount has decreased from $1,502 to $560.
Schedule HSR-DC Health Care Shared Responsibility
The filing thresholds have changed. Please see the updated filing thresholds below.
All district residents must either:
- Have qualifying health care coverage for yourself, your spouse/registered domestic partner (if filing jointly or separately on the same return) and anyone you or your married/registered domestic partner claim (or can claim) as a dependent;
- Have a coverage exemption for yourself, spouse/registered domestic partner (if jointly or separately filing on same return) and anyone who can be claimed as a dependent on you or your spouse/registered domestic partner return; or
- Make a health care shared responsibility payment.
Schedule H - Homeowner and Renter Property Tax Credit
The DC real property tax credit is now based on your DC real property tax bill for tax year 2023. Do not include special assessments, interest, penalties, or services charges.
- Maximum property tax credit has increased from $1,250 to $1,325.
- Federal AGI eligibility threshold for taxpayers under 70 has increased to $61,300.
- Federal AGI eligibility threshold for taxpayers age 70 or older has increased to $83,700.
Schedule ELC - Keep Child Care Affordable Tax Credit
The District taxable income thresholds for the 2023 tax year have changed to:
a. Single and Head of Household: $157,200;
b. Married/Registered Domestic Partners Filing Jointly: $157,200;
c. Married/Registered Domestic Partners Filing Separately on the same return: $157,200;
d. Married/Registered Domestic Partners Filing Separately: $78,600
- The maximum credit amount has increased to $1,115.