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How to take advantage of the tax brackets?

Updated: Feb 3

Deductions and credits.

Keep your hard-earned money in your bucket!

Deductions and credits are the keys to reducing the amount of taxes you may owe Uncle Sam.

I cannot stress enough the importance of understanding the best circumstances to fully take advantage of the tax code. This is where having a good tax advisor becomes a differentiator in wealth building.

There are multiple strategies besides the high-level concept of the standard or the itemized deductions.

Goal - Having your income taxed at a low rate

Knowing your current tax bracket is a good starting point to determine which bracket to target to keep your hard-earned money. Individual deductions may vary depending on filing status, age, disability, or dependent claim.

You can find detail information by visiting IRS at for the brackets of single and married taxpayers for the year 2023 in the U.S.

2023 U.S. Federal Income Tax Brackets

Tax Rate

Single Taxpayer

Married Filing Jointly


[$0 - $11,000]

[$0 - $22,000]


[$11,001 - $44,725]

[$22,001 - $89,450]


[$44,726 - $95,375]

[$89,451 - $190,750]


[$95,376 – 182,100]

[$190,751 – 364,200]


[$182,101 - $231,250]

[$364,201 - $462,500]


[$231,251 - $578,125]

[$462,501 - $693,750]


[$578,125 – and up]

[$693,750 – and up]

Credits and deductions for businesses

  • Work opportunity tax credit

  • Employee retention credit

  • Employer-provided childcare credit

  • Opportunity zones

  • Clean vehicle credits

  • Energy efficient commercial buildings deduction

  • Credit for builders or energy-efficient homes

  • Advanced energy project credit

  • Research credit

  • Deducting business expenses

  • Abusive tax shelters and transactions

  • Limitation on the deduction for business interest expense

  • Rehabilitation credit

You can get detail information on credits and deductions for businesses from the IRS article at

Strategy - Income shifting

  • Establish a business with the proper structure.

  • Involve children and family or partners and divide ownership accordingly in consideration of the tax brackets.

  • Maintain control of the business through using trusts and other entities.

  • Ensure your books are in order so you can account for all your deductions and ensure your are aiming for a profitable business.

  • Document the transactions.

Facts and circumstances for every tax payer are unique. If you need a closer look for your case, click here to book a free discovery call to see if we are a good fit for helping you take advantage of the tax brackets.

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