Numbers You Need to Know: 2022 and 2023

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Key numbers to consider as you ponder crucial goals

Below you’ll find key numbers to consider as you ponder crucial goals like saving enough for retirement and college expenses, amounts to give to charities, and planning for changes in your estate. Keep in mind that, while averages are interesting, your individual situation may differ. As you think about goals such as how to save for your children’s college costs and how to limit this year’s tax bill, please consult a Citi Personal Wealth Management Financial Advisor, who can coordinate financial planning strategies with your tax advisor.

Figure 1: Cost of Living
Figure 1: Cost of Living
This chart shows the average cost of living for raising children, paying for education, home ownership, retirement, medical expenses, and nursing home costs in the U.S.
Sources: To Raise A Child In 2022, It Costs A Hair-Raising $310,605 from Kaiser Health News (Released August 2022). Average Cost of College & Tuition from Education Data Initiative (released October 2022). Median Sales Price of Houses Sold for the United States from Federal Reserve Bank of St. Louis (released October 2022). How to plan for rising health care costs from Fidelity (released August 2022). Nursing Home Costs in 2022 from Senior Living (released October 2022).
Figure 2. Family Financial Snapshot
Figure 2. Family Financial Snapshot
This chart indicates the percentages of U.S. families who have retirement accounts, own their own homes and vehicles, have debt with credit card balances, mortgages or other home-secured debt.
Sources: Who Has Retirement Accounts? from The United States Census Bureau (released August 2022). Quarterly Residential Vacancies and Homeowner- ship, Third Quarter 2022 from The United States Census Bureau (released November 2022). Second homes: 15 Percent of New Home Sales from National Association of Home builders (released March 2021). Millions of Americans Have Used Risky Financing Arrangements to Buy Homes from Pew Research (released May 2022). What is Debt Free Living? from American Express (released March 2020). Jaw-Dropping Stats About the State of Debt in America from Go Banking Rates (December 2022).

Please note: With the “Cost of Living” and “Family Financial Snapshot” sections, some data is based on studies and surveys conducted prior to 2022, where updated versions of the studies and surveys were not available.

Figure 3: Taxes
  2023 2022
Earnings subject to Social Security payroll tax: $160,200 $147,000
Maximum federal income-tax rate of 37% if
income above: 		$693,750 if married filing jointly
$578,125 if single 		$647,850 if married filing jointly
$539,900 if single
3.8% Medicare surtax applies to net
investment income if total income above: 		$250,000 if married filing jointly
$200,000 if single 		$250,000 if married filing jointly
$200,000 if single
Standard deduction:1 $27,700 if married filing jointly
$13,850 if single 		$25,900 if married filing jointly
$12,950 if single
Personal exemption: None None
Gift tax exclusion: $17,000 $16,000
Estate tax exclusion: $12.92 million $12.06 million
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This table compares some key U.S. Federal Income Tax numbers between 2022 and 2023, from payroll taxes and income tax rates to gift and estate tax exclusions.
Sources: IRS and Social Security Administration.
1 For 2023, as in 2022, 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.
Figure 4: Retirement
2023 2022
Traditional and Roth IRA contribution limit.1 $6,500 ($7,500 if age 50 or older) $6,000 ($7,000 if age 50 or older)
If covered by retirement plan at work,
traditional IRA deduction phases out at: 		$116,000 to $136,000 if
married filing jointly
$73,000 to $83,000 if single 		$109,000 to $129,000 if
married filing jointly
$68,000 to $78,000 if single
If spouse covered by retirement plan but you,
aren't, your IRA deduction phases out at: 		$218,000 to $228,000 in joint income $204,000 to $214,000 in joint income
Eligibility to fund a Roth IRA phases
out at these incomes: 		$218,000 to $228,000 if
married filing jointly
$138,000 to $153,000 if single 		$204,000 to $214,000 if
married filing jointly
$129,000 to $144,000 if single
401(k) contribution limit: $22,500 ($30,000 if age 50 or older) $20,500 ($27,000 if age 50 or older)
SIMPLE IRA contribution limit: $15,500 ($19,000 if age 50 or older) $14,000 ($17,000 if age 50 or older)
SEP IRA contribution limit:2 25% of employee annual compensation, up to $66,000 25% of employee annual compensation, up to $61,000
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This table compares retirement related U.S. Federal Income Tax numbers between 2022 and 2023, from IRA contribution limits to deduction phase out dollar amounts based upon various scenarios.
Sources: IRS and Social Security Administration.
1 There are no income eligibility limits for contributions to a Traditional IRA. But if you or your spouse are covered by a workplace retirement plan, income limits apply for deducting annual contributions. With a Roth IRA, various income eligibility limits apply. Note that earned income is generally required in order to contribute to an IRA. Please see the IRS website for current information: irs.gov/retirement-plans/traditional-and-roth-iras.
2 The employer makes contributions to a SEP IRA for employees. Contribution limits listed in the table are for the employer. Employee contributions are not permitted.
Figure 5: College
2023 2022
UGMA/UTMA account: Up to $17,000 without worrying about gift tax1 Up to $16,000 without worrying about gift tax1
Kiddie tax on unearned income: First $1,250 covered by child’s exemption2 First $1,150 covered by child’s exemption2
529 college savings plans: Can contribute $85,0003 and count it as your gift for next five years ($170,000 per married couple) Can contribute $80,0003 and count it as your gift for next five years ($160,000 per married couple)
Coverdell education savings account:
 $2,000 maximum contribution $2,000 maximum contribution
Eligibility to contribute phases
out at these incomes 		$190,000 to $220,000 if married filing jointly
$95,000 to $110,000 if single 		$190,000 to $220,000 if married filing jointly
$95,000 to $110,000 if single
Hope Scholarship/American Opportunity Credit: $2,500 maximum per student $2,500 maximum per student
Phases out at these incomes: Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single 		Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
Lifetime Learning Credit: $2,000 maximum $2,000 maximum
Phases out at these incomes: Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single 		Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
Education loan interest deduction: $2,500 maximum $2,500 maximum
Phases out at these incomes: $155,000 to $185,000 if married filing jointly
$70,000 to $85,000 if single 		$145,000 to $175,000 if married filing jointly
$70,000 to $85,000 if single
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This table compares college expense related U.S. Federal Income Tax numbers between 2022 and 2023, from UGMA/UTMA accounts, 529 plans and Coverdell savings accounts to Lifetime Learning Credits and education loan interest deductions.
Sources: IRS and Social Security Administration.
1 There is no limit but annual gifts above $16,000 in 2022 and $17,000 in 2023 a year typically require a gift tax return to be filed with the IRS. Any amount in excess of $16,000/$17,000 in a year must be counted toward the individual’s lifetime gift-tax exclusion limits referenced above.
2 In 2022 the next $1,150 is taxed at the child’s marginal tax rate. All amounts above $2,300 are taxed at the parents’ marginal tax rate. In 2023 the next $1,250 is taxed at the child’s marginal tax rate. All amounts above $2,500 are taxed at the parents’ marginal tax rate.
3 Five times annual gift-tax exclusion. Consult a tax advisor for important considerations regarding the five times annual gift-tax exclusion.