Tax Update: What’s New in 2022

Tax Update: What’s New in 2022


We’re happy to share some relatively good news for 2022, as the IRS schedule for federal tax rates and income brackets for 2022 provide some tax breaks for the substantial inflationary impact we’ve all experienced in 2021. While the tax rates themselves remain unchanged, you’ll be able to pocket some extra cash as each of the seven income brackets have been increased for inflation.

For 2022 individual single taxpayers:
  10%     Taxable income up to $10,275
  12%     Taxable income between $10,275 to $41,775
  22% Taxable income between $41,775 to $89,075
  24%     Taxable income between $89,075 to $170,050
  32%     Taxable income between $170,050 to $215,950
  35%     Taxable income between $215,950 to $539,900
  37%   Taxable income over $539,900
For 2022 married individuals filing jointly:
  10%     Taxable income up to $20,550
  12%     Taxable income between $20,550 to $83,550
  22%     Taxable income between $83,550 to $178,150
  24%     Taxable income between $178,150 to $340,100
  32%     Taxable income between $340,100 to $431,900
  35%     Taxable income between $431,900 to $647,850
  37%     Taxable income over $647,850

 

The standard deduction for 2022 was also increased as follows:
Married couples filing jointly: $25,900
Single taxpayers and married individuals filing separately: $12,950
Heads of households: $19,400 for tax year 2022

There’s good news too as the agency recently announced increases to your 2022 retirement plan contributions.

To compare, here are the federal tax brackets for 2021.

2021 individual single taxpayers:
  10%     Taxable income up to $9,950
  12%     Taxable income between $9,950 to $40,525
  22%     Taxable income between $40,525 to $86,375
  24%   Taxable income between $86,375 to $164,925
  32%     Taxable income between $164,925 to $209,425
  35%     Taxable income between $209,425 to $523,600
  37%     Taxable income over $523,600
2021 married individuals filing jointly:
  10%   Taxable income up to $19,900
  12%     Taxable income between $19,900 to $81,050
  22%     Taxable income between $81,050 to $172,750
  24%     Taxable income between $172,750 to $329,850
  32%     Taxable income between $329,850 to $418,850
  35%     Taxable income between $418,850 to $628,300
  37%     Taxable income over $628,300

 

Need help with your taxes? Please contact us today.
 
 
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