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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