INFLATION ADJUSTMENTS ANNOUCED FOR 2022 TAX YEAR

Posted on November 23, 2021

The Internal Revenue Service (IRS) announced a series of inflation adjustments for dozens of tax provisions for the 2022 tax year. There will be seven tax brackets. Those are:

– 37% for incomes over $539,900 ($647,850 for married couples filing jointly)
– 35%, for incomes over $215,950 ($431,900 for married couples filing jointly)
– 32% for incomes over $170,050 ($340,100 for married couples filing jointly)
– 24% for incomes over $89,075 ($178,150 for married couples filing jointly)
– 22% for incomes over $41,775 ($83,550 for married couples filing jointly)
– 12% for incomes over $10,275 ($20,550 for married couples filing jointly)
– 10% for incomes of $10,275 or less ($20,550 for married couples filing jointly)

Standard deductions for tax year 2022 will be going up. Those will be:

– Married couples filing jointly: $25,900 up $800 from the prior year
– Single taxpayers and married individuals filing separately: $12,950, up $400
– Heads of household: $19,400, up $600.