good morning, everyone. happy new year! and welcome to this special edition of cnn this morning. s this sunday, january 1st, 2023. i got to say it first, boris. i m amara walker. 2023. isn t that crazy, amarah. where does the time go? yeah. thank you so much for joining us on this new year s day. i m boris sanchez. we hope your new year is off to a fantastic start. is it, amara? it s too early to say, but i ll tell you this, i do not set new year s resolutions, because i just disappoint myself. i take it literally day by day. let s survive today, january 1st, and see what the next day brings. i am fully with that sentiment. here s what s ahead for you this hour on cnn this morning. the new year comes with new rules when it comes to filing your taxes. why that could mean a larger paycheck this year. plus, if you ve been to the store lately, there s a good chance that there s an unexpected item in the bagging area. sound familiar? coming up, we ll talk about those
determine how much to withhold from an employee s paycheck. so those withholding tables will be adjusted to reflect these higher amounts, and that should result in lower withholding from the employees and therefore, higher paychecks. and you were mentioning the tax bracketts, the irs is bumpig up all seven brackets to those higher thresholds. all put together, how significant is this? well, you know, as you said, the 7% increase is the largest we ve had in many years, and so looking at those numbers, the increase in the standard deduction, they re talking hundreds of dollars there and the tax brackets with, similarly, the higher the bracket, the higher the numbers. but you re talking hundreds of dollars there, as well. and is there anything folks could be doing to safeguard their retirement funds during this time of inflation? we should mention the irs is also boosting to 2023 contribution limits for 401(k)s
so the if you are a taxpayer whose income has not gone up that same 7% then you would see a lower tax bill, because more of your income would fall in that higher standard deduction or more of your income would fall in a lower tax bracket. if, however, you ve been lucky enough that your income has gone up that 7% along with inflation, then the goal is to keep you in the same place so that your taxes will be about the same as they were in the past. so, how much does this really help offset rising costs? are families and individuals, are they going to see a meaningful difference in their pockets? yes, the inflation adjustments that you are talking about, the standard deduction and the tax brackets are both reflected in the irs withholding tables, and those withholding tables are what employers use to
here and there no refund at all or they have to pay for the first time. look at the local headlines. spokane, washington, for example, wash your federal tax refund only a pittance, you re not alone. charleston, south carolina and maine warning the same. the detroit free press points out smaller refunds means some won t catch up on their bills. with us, ben white. what was interesting to me as i was looking at local newspapers, frankly, a lot of them just cut and paste. these are real local stories that local reporters have gone out. they ve been the headlines in the newspaper. that s really going on here? what s really going on here is that we had this big tax cut law passed in 2017. in 2018 the trump administration changed the withholding tables so people would see more money in their paychecks. people might have seen $30 more
didn t understand that it was also going to be coming out of their what they thought would be in their pocket in the future. and that s where i empathize. i empathize with people that had expected a refund because they somehow had the misinformation that that s money coming to them from the government and not their money coming back so what we have to do going forward is educate people on withholding tables and making sure that their paychecks reflect what they want to have held backs into the next tax season, and in the next time we are 100% sure most average americans have more money in their bank account rather than loaning it to uncle sam. congresswoman ilhan omar has apologized for anti-semitic tweets. republicans, including yourself, have criticized her and the president said she should resign. she responded, hi, donald trump, you have trafficked in hate with jews, muslims, indigenous, black people and more. i have learned by people impacted by my words. when will you?