Calculator update notes for 3-31-2023, especially important updates and enhancements to the income tax calculators.
Overview: Financial Calculator Update 3/31/2023
The quarterly update for 3/31/2023 is a targeted update in regards to content. It is focused on updating the tax calculators to 2023 as we near the close of the 2022 tax season.
All maintenance releases are cumulative, so if you apply this update, you will have all previous calculator updates as well. For your reference you can view the previous update notes here: 12/31/2022 Update.
Download the latest update package for your calculators from your download site, found on your update e-mail notice.
Execute the KJEUpdate.exe file from your download. This is a self-extracting zip file. (Or unzip the KJEUpdate.zip file if you are using a non-windows platform.) If you see a warning message, you can safely continue. When prompted for a directory, you may use the default or enter your own. It is recommended that you extract the update to a new directory and then move the required files to your production or staging environment. One directory will be created with no subdirectories.
Replace all files provided in update package. The update package includes all JS files and CSS files that are required to update the content of your calculators. IMPORTANT! The update package does not contain any HTML files or the KJESiteSpecific.js or KJESiteSpecific.css files. These files are not required for an upgrade, and replacing them may result in overwriting custom changes for your website installation. If you use the full installation package and have changed the file KJESiteSpecific.js or KJESiteSpecific.css files do not replace them.
When you test the new version of the calculators, make sure that the browser you are using uses the new files instead of any it may have in its cache. You may need to clear the browser's cache manually to ensure the new versions are loaded.
Update Failure or Issues
If your update fails, or provides unexpected coloring and formatting, Please try the following to update your sites calculators.
Download your full install calculator package KJECalc.exe (or KJECalc.zip). Use the FULL INSTALL package for this update, not the update package.
Execute the KJECalc.exe file . This is a self-extracting zip file. (Or unzip the KJEUpdate.zip file if you are using a non-windows platform.) If you see a warning message, you can safely continue. When prompted for a directory, you may use the default or enter your own. It is recommended that you extract the update to a new directory and then move the required files to your production or staging environment. One directory will be created with no subdirectories.
Replace all files provided in FULL INSTALL package. The package includes all JS files and CSS files that are required for a clean install of your calculators. If you have changed the file KJESiteSpecific.js or KJESiteSpecific.css files it is recommended you make a backup of these two files before you overwrite them with the new ones.
Test Clear your browsers cache and test your calculators. Please contact us with questions or issues such as colors or required special settings (we can do this as part of your normal update package for the current and future releases).
New Hosting Service
We also another option that you might want to consider. Our hosting package allows you to have calculators that you "set and forget" - all updates are applied automatically as part of the service. No more downloads or installation of updates.
Features
We match your colors, logos, fonts to match your site
You can link directly to the hosted calculators in it's app interface
Embed any calculator from your package into any page on your site for seamless integration.
Easily add calculator to your package without coding or downloads.
Here are two fully integrated examples using our hosting service:
The V3 (HTML5/JavaScript) calculators do not require any edits or modifications to HTML pages, all changes are encapsulated within the JS files provided. If you see anything that needs attention in on your website, please contact us for assistance. This update has some changes that may affect your deployment, we are ready and willing to make our newest calculators look great on your site!
All Calculators: Removed all inline CSS from all calculators. This provides better support for sites using a Content Security Policy (CSP) that prohibits inline css.
ADA and Screen Readers: Updates to improve ADA and screen reader functionality continue to be applied. All calculators follow the ADA guidelines to meet accessibility specification WCAG 2.1 Level AA and Section 508. As intrepretation of these guidelines change and ADA scanning tools are refined, we continue to monitor and update the calculators.
1040 Tax Estimator: (Tax1040.html) has been updated for new rates and schedules for 2023. This includes changes to the definitions, and the calculation modules. It is likely that additional changes to the tax rates and rules will take place before the end of 2023. The following tables and definitions have been updated in all calculators in which they appear.
Use the ‘Filing Status and Federal Income Tax Rates on Taxable Income’ table to assist you in estimating your federal tax rate.
Filing Status and Federal Income Tax Rates on Taxable Income for 2023*
Tax Rate
Married Filing Jointly or Qualified Widow(er)
Single
Head of Household
Married Filing Separately
10%
$0 - $22,000
$0 - $11,000
$0 - $15,700
$0 - $11,000
12%
$22,000 - $89,450
$11,000 - $44,725
$15,700 - $59,850
$11,000 - $44,725
22%
$89,450 - $190,750
$44,725 - $95,375
$59,850 - $95,350
$44,725 - $95,375
24%
$190,750 - $364,200
$95,375 - $182,100
$95,350 - $182,100
$95,375 - $182,100
32%
$364,200 - $462,500
$182,100 - $231,250
$182,100 - $231,250
$182,100 - $231,250
35%
$462,500 - $693,750
$231,250 - $578,125
$231,250 - $578,125
$231,250 - $346,875
37%
Over $693,750
Over $578,125
Over $578,125
Over $346,875
*Caution: Do not use these tax rate schedules to figure 2022 taxes. Use only to figure 2023 estimates. Source: Rev. Proc. 2022-45
Standard Deduction for 2023 Federal Income Tax
Filing Status
Standard Deduction
Married Filing Joint
$27,700
Qualified Widow(er)
$27,700
Single
$13,850
Heads of Household
$20,800
Married Filing Separately
$13,850
Alternative Minimum Tax Exemption Amount by Filing Status 2023
Filing Status
Exemption Amount
Exemption Phaseout Threshold
Married Filing Jointly
$126,500
$1,156,300
Qualified Widow(er)
$126,500
$1,156,300
Single
$81,300
$578,150
Heads of Household
$81,300
$578,150
Married Filing Separately
$63,250
$578,150
Long-term capital gains are taxed at lower, special capital gains rates and are calculated as follows (note that qualified dividends are taxed as if they were a long-term capital gain):
Calculate your total taxable income without long-term capital gains.
Use this amount to determine the rate for your long-term gain, up to the top of the bracket.
The portion of your long-term capital gain that exceeds a bracket will be taxed at the next higher rate.
This calculator assumes that none of your long-term capital gains come from collectibles, section 1202 gains or un-recaptured 1250 gains. These types of capital gains are taxed at 28%, 28% and 25% respectively (unless your ordinary income tax bracket is a lower rate).
Long-term Capital Gain Tax Rates 2023*
Tax Rate
Married Filing Jointly or Qualified Widow(er)
Single
Head of Household
Married Filing Separately
0%
$0 - $89,250
$0 - $44,625
$0 - $59,750
$0 - $44,625
15%
$89,250 - $553,850
$44,625 - $492,300
$59,750 - $523,050
$44,625 - $276,900
20%
Over $553,850
Over $492,300
Over $523,050
Over $276,900
*Caution: Do not use these tax rate schedules to figure 2022 taxes. Use only to figure 2023 estimates. Source: Rev. Proc. 2022-45
Additional defintions have been updated:
Residential clean energy credit (Form 5695): This is a credit for residential installation of qualified energy saving or producing equipment. This includes qualified solar electric generating equipment, solar water heating equipment (other than for hot tubs and pools), geothermal heat pumps, wind energy generators or fuel cell power plants. The credit is 30 percent of qualifying expenses. This credit was renewed through 2032. See Form 5695 for more information.
Household employment taxes (Schedule H):
Enter any household employment taxes you owe (use Schedule H to determine this tax amount).
Earned income credit qualification. Are you (or spouse if married) at least age 25 but under age 65?: Check this box if you or your spouse will be at least age 25 and less than 65 years old at the end of the tax year. This rule only applies to people without any children. Your response is not used if you have 1 or more qualified children.
Gifts to charity (cash):
Enter your total gifts of cash to qualified charitable organizations (check, credit card, actual cash, payroll contributions or 'texted' contributions include on your phone bill). If you itemize on Schedule A, 2023 allows you to deduct up to 60% of your Adjusted Gross Income (AGI). Note that cash donations do not qualify for a tax deduction unless you itemize your deductions on Schedule A and you choose to use your Schedule A Itemized Deductions rather than your standard deduction.
Gifts to charity (non-cash):
Enter your total gifts of non-cash to qualified charitable organizations. The amount should be the fair market value of those gifts, not the amount originally paid. Note that non-cash donations do not qualify for a tax deduction unless you itemize your deductions on Schedule A and you choose to use your Schedule A Itemized Deductions rather than your standard deduction. In addition, most non-cash gifts are limited to 50% of your Adjusted Gross Income (AGI). This calculator will limit your gifts to 50% of your AGI when calculating your taxes. It is beyond the scope of this calculator to calculate the special situations that may have different deductible limitations. You may include amounts in this line that were not allowed on previous year's Schedule A due to the AGI limitation but the total will remain limited to 50% of your AGI.
Taxes paid (generally state and local):
Enter the total of your 1) state and local property taxes and 2) state and local income taxes. If your state does not have an income tax (or you have paid more sales tax than income tax during the year) you can choose to include state and local sales tax paid instead of state and local income taxes. You are limited to a maximum $10,000 deduction for taxes paid.
U.S. Easy Tax Estimator: (TaxEZ1040.html) has been updated for new rates and schedules for 2023. This includes changes to the definitions, and the calculation modules.
Simple Federal Tax Calculator: (Tax1040Simple.html) has been updated for new rates and schedules for 2023. This includes changes to the definitions, and the calculation modules.
Marginal Tax Calculator: (TaxMargin.html, SPTaxMargin.html) has been updated for new rates and schedules for 2023. This includes changes to the definitions, and the calculation modules. In addition to the 2023 udpates, the following definitions have been expanded:
Wages, salaries, tips, etc.
This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc. This calculator is designed to work primarily with earned income taxed at ordinary income tax rates. It is not designed to calculate taxes from capital gains, business income or passive income sources.
Income Tax Rate Definitions (this appears on the report and main calculator)
Income Tax Rates
Average tax rate
This is your total income divided by your total Federal tax. The average tax rate is almost always lower, sometimes by a wide margin, than your income tax bracket or marginal tax rate.
Income tax bracket
This is the highest Federal income tax bracket used in calculating your total Federal tax. This is calculated by looking up the highest Federal income tax bracket that includes your taxable income.
Marginal tax rate
This is the percentage paid in Federal taxes on additional income. To determine your marginal tax rate, the tool recalculates your total Federal income tax using your current income plus an additional income amount. The additional income amount is $1,000 for incomes under $100,000 and $10,000 for incomes over $100,000. We then divide the difference between your original Federal tax and the recalculated Federal tax by the amount of additional income. Your marginal tax rate captures the effect of additional income taxed in higher income brackets and the phase-out of deductions and credits. It will never be lower than your current tax bracket.
Dependents qualifying for child tax credit
Enter the number of dependent children that qualify for the child tax credit. To qualify, a child must be under age 17 at the end of the year. They must be either your child, one of your siblings or your foster child or a child of any of them (for example your grandchild). In addition, they must have lived with you for more than half of the year, not provide more than half of their own support and must be claimed as a dependent on your tax return. In 2023, for each qualifying child you can receive up to a $2,000 tax credit. While the same as the prior year, this amount is significantly lower than 2021. In 2021, the tax credit was up to a $3,600 per child under age six and up to $3,000 per child age six to 17.
Income Thresholds for Child Tax Credit Phaseout of $2,000 for children and $500 for other dependents
Filing Status
Maximum AGI for Full Credit
AGI No Credit
Married Filing Jointly
$400,000
$50 reduction for every $1,000 over threshold
Qualified Widow(er)
$400,000
$50 reduction for every $1,000 over threshold
Single
$200,000
$50 reduction for every $1,000 over threshold
Heads of Household
$200,000
$50 reduction for every $1,000 over threshold
Married Filing Separately
$200,000
$50 reduction for every $1,000 over threshold
Self Employment Tax Calculator: (TaxSelfEmployment.html) has been updated for new rates and schedules for 2023. This includes changes to the definitions, and the calculation modules. Please note that no new entry or output fields were required, but the tax tables and many of the tax computations were affected.
Earned Income Tax Credit Calculator: (EarnedIncomeCredit.html) has been updated for new rates and schedules for 2023. This includes changes to the definitions, and the calculation modules. Please note that no new entry or output fields were required, but the tax tables and many of the tax computations were affected. In additiona the following defenition was updated:
Are you (or spouse if married) at least age 25 but under age 65?: Check this box if you or your spouse will be at least age 25 and less than 65 years old at the end of the tax year. This rule only applies to people without any children. Your response is not used if you have 1 or more qualified children.
Charitable Tax Savings Calculator: (CharitableTax.html) has been updated for new rates and schedules for 2023. This includes changes to the definitions, and the calculation modules. Please note that no new entry or output fields were required, but the tax tables and many of the tax computations were affected.
Taxable Social Security Benefits Calculator: (SocialSecurityTaxable.html) has been updated for new rates and rules for 2023. This includes changes to the definitions, and the calculation modules. Please note that no new entry or output fields were required.
72(t) Calculaor: Early withdrawals from retirement accounts (Retire72T.html, Retire72T2.html), 72(t) Distributions: Impact on retirement fund balances (Retire72TAlt.html): The Federal Mid-Term rate has been updated for April 2023. This change affects the calculators default values and the definition of Reasonable Interest Rate For April 2023. For April 2023, 120% of the Federal Mid-Term rate is 4.99%.
Maximum amount for Future Value, IRR and Present Value Calculators increased to $100,000,000: The following tables have had input values for all dollar amounts increased from $10,000,000 to $100,000,000. Note that the slider control does not (by design) cover the entire range. However, you can type any amount up to the maximum directly into the input field.
Maximum Increased to $100,000,000
Calculator Name
Related HTML file
Annual Rate of Return Calculator
AnnualReturn.html
Lump Sum Annual Return Calculator
AnnualReturnAmount.html
Future Value Calculator
FutureValue.html
Lump Sum Future Value Calculator
FutureValueAmount.html
Internal Rate of Return (IRR) Calculator
IRRReturn.html
Internal Rate of Return Calculator
IRRReturn2.html
Present Value Calculator
PresentValue.html
Lump Sum Present Value Calculator
PresentValueAmount.html
Present Value Goal Calculator
PresentValueGoal.html
Beneficiary Required Minimum Distribution 10-Year distribution: The proposed IRS changes to how the 10-year distribution rule applies to Beneficiary RMDs appears likely to be retroactive for all of 2023. This change is specific non-spouse Designated Beneficiaries that use the SECURE Act 10-year rule for distributions. All affected calculators now follow the proposed rule. This update includes new language describing the rule and how it changed from its original interpretation:
A proposed rule for the SECURE Act was released on February 23, 2022. When finalized the new rule will change the way the RMDs are treated for non-spouse Designated Beneficiaries that use the SECURE Act 10-year rule for distributions. It is likely this new rule will be retroactive to all of 2023. Originally the required distributions under the 10-year rule required all funds to be withdrawn by the end of the year following the 10th anniversary of the account owner's death without regard to RMDs.
The proposed rule requires a beneficiary to withdraw an RMD for year 1 through 9 if the original account owner had already begun taking RMDs themselves. The remainder would then be required to be withdrawn in its entirety in year 10. This calculator follows the proposed rule with RMDs for year 1 through 9 if the account owner had required distributions before their death. All remaining funds are then required to be withdrawn in year 10.
As of 3/31/2023 the proposed rule has not been finalized. It is strongly advised you seek professional guidance in all RMDs and especially with beneficiary RMDs.
Use this calculator to create a projection of your future Required Minimum Distributions (RMD) as a "Designated Eligible Beneficiary" of a qualified retirement account.
