New 2022 Tax Brackets

On November 10th, 2021 the IRS announced their annual inflation adjustments to the 2022 federal income tax brackets. These adjustments impact more than 60 tax provisions. Here are the new numbers:

Standard Deductions:

Single or married filing separately: The standard deduction is risen by $400 and is now $12950

Married and filing jointly: The standard deduction is now $25,900, increasing by $800

Heads of households: The standard deduction is now $19,400, an increase of $600

2022 Tax Brackets for Single Taxpayers:

• 37% for incomes higher than $539,900

• 35% for incomes higher than $215,950

• 32% for incomes higher than $170,050

• 24% for incomes higher than $89,075

• 22% for incomes higher than $41,775

• 12% for incomes higher than $10,275

• 10% for incomes of $10,275 and less

2022 Tax Brackets for Married and Filing Jointly:

• 37% for incomes higher than $647,850

• 35% for incomes higher than $431,900

• 32% for incomes higher than $340,100

• 24% for incomes higher than $178,150

• 22% for incomes higher than $83,550

• 12% for incomes higher than $20,550

• 10% for incomes of $20,550 and less

To learn more, read the IRS announcement here, and as always, if you have any questions or concerns reach out to CKH Group here.

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