2023 Tax Credit Limits Based on Filing Status:

Tax Filing Status Previous Limit New Limit
Single Filer $1,000 $2,500
Married Separate Filer $1,250 $2,500
Married Joint Filer $2,500 $5,000
Pass-Through Owner (not making HB 149 election)* $10,000 $25,000
C Corp, Trust, or Pass-Through electing to pay tax at the entity level (HB 149) 75% of annual tax liability
New for 2023: Business that pays insurance premium tax 75% of annual tax liability, but credit shall not exceed $1 million

*Pass-through income required to support a $25,000 tax credit is $434,783 ($25,000 divided by .0575 = $434,783). Keep in mind that income   

 from the pass-throughs can include both profits (K-1) and wages (W-2) income. Pass-through income required to support a $10,000 tax credit

is $173,913. *For 2023, the tax credit cap increased to $120 million per year from $100 million per year.