The end of the year brings tax planning into focus, since tax filing is right around the corner.
2022 Tax Brackets
Tax rates for 2022 are remaining the same as 2021 but the tax brackets are changing slightly. In 2022 a single filer with income up to $10,275 will see a 10% tax rate in comparison to up to $9,950 in 2021 for a 10% rate.
The taxable income for a married couple filing jointly, MFJ, will see a 10% tax rate up to $20,550 compared to $19,900 in 2021 and up to $14,650 for head of household (HOH) in 2022 compared to $14,200 in 2021.
These slightly wider brackets are due to inflation. Your CironeFriedberg tax CPA can review this with you. You can also find all updated 2022 tax brackets on the IRS website, 2022 IRS Tax Brackets.
The standard deduction is increasing in 2022 to account for inflation. Single filers under 65 will be able to claim a standard deduction of $12,950 in 2022 compared to $12,550 in 2021. Single filers 65 and over can claim a $14,700 standard deduction.
Married couples will be able to claim a standard deduction of $25,900 in 2022, an $800 increase over 2021’s standard deduction of $25,100. In addition each spouse 65 and older can claim an additional $1,400.
Head-of-Household taxpayers under 65 will be able to claim a standard deduction of $19,400 in 2022, up from $18,800 in 2021, while head-of-household filers 65 and older can claim a standard deduction of $21,150.
In addition, each blind person of any filing status will receive an additional $1,400 on their standard deduction in 2022, a $50 increase from the $1,350 allowed in 2021.
If you need assistance or have any questions on the information in this article, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford) or email us at firstname.lastname@example.org.