2022 Federal Income Tax Brackets, Standard Deductions, Tax Rates

2022 Tax Brackets
Price	Married Submitting Collectively	Single Particular person	Head of Family	Married Submitting Individually
10%	$20,550 or much less	$10,275 or much less	$14,650 or much less	$10,275 or much less
12%	Over $20,550	Over $10,275	Over $14,650	Over $10,275
22%	Over $83,550	Over $41,775	Over $55,900	Over $41,775
24%	Over $178,150	Over $89,075	Over $89,050	Over $ 89,075
32%	Over $340,100	Over $170,050	Over $170,050	Over $170,050
35%	Over $431,900	Over $215,950	Over $215,950	Over $215,950
37%	Over $647,850	Over $539,900	Over $539,900	Over $323,925

There is no such thing as a longer a private exemption as a result of 2017 Tax Cuts and Jobs Act. Taxpayers whose internet funding revenue exceeds the IRS restrict ($200,000 for a person taxpayer, $250,000 married submitting collectively, or $125,000 married submitting individually) are topic to a 3.8% internet funding revenue tax (NIIT) on funding revenue above these limits.

Commonplace Deduction

The usual deduction is a particular determine that taxpayers can use to scale back their taxable revenue once they file their annual tax returns. Notice that taxable revenue is your adjusted gross revenue (AGI) much less any itemized deductions or your commonplace deduction.

2022 Commonplace Deductions

The deduction set by the IRS for the 2022 tax 12 months is as follows:

The extra commonplace deduction quantity for a person who’s aged or blind is $1,400. That quantity will increase to $1,750 for people who’re single and in the event that they aren’t surviving spouses. The usual deduction for claiming a dependent is $1,150 or $400 plus the person’s earned revenue (so long as it’s not over $12,950)—whichever is larger.

Capital Positive factors

Capital positive aspects charges are decrease than a taxpayer’s bizarre revenue fee. However they rely upon the taxpayer’s taxable revenue and submitting standing. The utmost adjusted capital positive aspects charges apply for each the common revenue tax and the choice minimal tax.

Your capital positive aspects fee is 0% for the 2022 tax 12 months offered your revenue doesn’t exceed:

• $83,350 for married {couples} submitting collectively
• $41,675 for married {couples} submitting individually
• $55,800 for the pinnacle of a family
• $41,675 for single filers

Within the 2022 tax 12 months, the 15% fee applies to adjusted internet capital positive aspects for:

• Joint returns of as much as $517,200
• Married people’ separate returns of as much as $258,600
• Head of family returns of as much as $488,500
• Single particular person returns of as much as $459,750

The relevant capital positive aspects fee is about at 20% for any revenue quantities above these ceilings.

Particular person Tax Credit

Earned Revenue Tax Credit score (EITC)

The utmost quantity of the earned revenue tax credit score (EITC) for taxpayers whose self-reported incomes have been within the lowest revenue bracket and the taxable revenue ranges for its thresholds and ceilings are additionally adjusted for inflation. The utmost credit score for 3 or extra youngsters is $6,935 within the 2022 tax 12 months. For married {couples} submitting collectively, the phaseout of the credit score begins at $26,260 of adjusted gross revenue (or earned revenue, if greater). The credit score is accomplished at $59,187.

No EITC is allowed if the mixture quantity of funding revenue, equivalent to from curiosity, dividends, internet capital positive aspects, or different passive actions, exceeds $10,300 within the 2022 tax 12 months.

Youngster Tax Credit score: Reverts to Pre-2021 Guidelines for 2022

President Biden’s American Rescue Plan made adjustments to the Youngster Tax Credit score for 2021, growing the credit score to as a lot as $3,000 per little one ($3,600 for ages 6 and youthful) and elevating the age restrict for qualifying youngsters to 17 (from 16). The utmost refundable portion of the kid credit score for every little one underneath age 17 was restricted to $1,400 per little one. The credit score was absolutely refundable for that quantity in 2021. The kid tax credit score for tax years 2022 and onward reverts again to pre-2021 guidelines. The quantity for 2022 is $1,500.

Certified Adoption Bills

The credit score for certified adoption bills, in addition to the particular credit score for the adoption of a kid with particular wants, quantity to $14,890 for 2022. The exclusion from an worker’s revenue for certified adoption bills which can be paid or reimbursed underneath an employer plan will likely be elevated to the identical stage.

Lifetime Studying Credit score

In 2022, the utmost $2,000 per return lifetime studying credit score (LLC) for certified instructional bills for a taxpayer, partner, or dependent is phased out for taxpayers with MAGI in extra of $80,000 ($160,000 for joint returns).

International Earned Revenue Exclusion

The international earned revenue exclusion is about by the IRS at $112,000 for the 2022 tax 12 months.

Various Minimal Tax

The choice minimal tax (AMT) applies to different minimal taxable revenue, equivalent to common taxable revenue with sure tax advantages added again, in extra of an exemption stage.

The choice minimal tax exemption ranges for the 2022 tax 12 months are as follows:

• $118,100 for joint returns
• $75,900 for single people
• $59,050 for married individuals’s separate returns

These different minimal tax exemption ranges part out, in 2022, from:

• $1,079,800 to $1,552,200 for joint returns
• $539,900 to $843,500 for single people
• $539,900 to $776,100 for married individuals’s separate returns

The choice minimal tax fee is 28% for different minimal taxable revenue as much as a most of $206,100 (for 2022) for returns of married {couples} and single people ($103,050 in 2022, for married submitting individually).

Elevated Allowances: Fringe Advantages, Medical Spending Accounts, and Estates

The month-to-month restrict for certified transportation and certified parking fringe advantages is $280 for the 2022 tax 12 months.

The utmost wage discount for contributions to well being versatile spending accounts (FSAs) is $2,850 for 2022. The utmost carryover of unused quantities for cafeteria plans is $570 for 2022.

The thresholds and ceilings for members in medical financial savings accounts (MSAs) are from:

• $2,450 to $3,700 with a most out-of-pocket expense of $4,950 for self-coverage for 2022
• $4,950 to $7,400 with a most out-of-pocket expense of $9,050 for household protection for 2022

For a decedent who died in 2022, the exemption stage for the property tax is about at $12.06 million for the 2022 tax 12 months. The annual present tax exclusion is $16,000 for 2022.

Retirement Plans

The IRS additionally units limitations on retirement plan contributions and phaseout ranges. The revenue exclusion for worker contributions to employer retirement plans, equivalent to 401(ok)s, 403(b)s, 457 plans, and the federal authorities’s Thrift Financial savings Plan, is $20,500 for the 2022 tax 12 months, filed in 2023. The catch-up contribution for workers ages 50 and older is $6,500. The limitation for SIMPLE (Financial savings Incentive Match Plan for Staff) retirement accounts is $14,000 for 2022.

Particular person Retirement Accounts (IRAs)

The deductible quantity for particular person retirement account (IRA) contributions is $6,000 for 2022. Folks ages 50 and older can contribute an extra $1,000 every year.

The phaseout ranges for the deduction, although, are adjusted upward. If both a taxpayer or their partner is roofed by a office retirement plan in the course of the 12 months, the deduction could also be decreased or phased out till it’s eradicated. 

The phaseout ranges for tax 12 months 2022 are:

• If a person is an energetic participant in an employer retirement plan, the deduction phaseout for adjusted gross incomes is $68,000–$78,000 for single people and heads of households, and $109,000–$129,000 for joint returns.
• For an IRA contributor who will not be an energetic participant in one other plan however whose partner is an energetic contributor, the phaseout ranges from $204,000 to $214,000.
• For a married energetic contributor submitting a separate return, there isn’t a adjustment and the phaseout vary will stay $0 to $10,000.

Roth IRAs

For the 2022 tax 12 months, the phaseout ranges for Roth IRA contributions are $129,000 to $144,000 for single taxpayers and heads of households and $204,000 to $214,000 for joint returns. The Roth IRA phaseout for a married particular person’s separate return stays at $0 to $10,000.

Saver’s Credit score

Low-income taxpayers who make a contribution to 401(ok), 403(b), SIMPLE, SEP (Simplified Worker Pension), or sure 457 plans, in addition to conventional and Roth IRAs, are entitled to say a nonrefundable tax credit score along with their exclusions or deductions. 

Married taxpayers submitting joint returns are eligible to say a credit score for contributions of as much as $4,000 at a fee for the 2022 tax 12 months of:

• 50% with AGI as much as $41,000
• 20% with AGI as much as $44,000
• 10% with AGI as much as $68,000

Heads of households can declare, in 2022, a credit score for as much as $2,000 of contributions at a fee of:

• 50% with AGI as much as $30,750
• 20% with AGI as much as $33,000
• 10% with AGI as much as $51,000

All different taxpayers are eligible to say, for 2022, a credit score for as much as $2,000 of contributions at a fee of:

• 50% with AGI as much as $20,500
• 20% with AGI as much as $22,000
• 10% with AGI as much as $34,000

The Backside Line

Yearly, often in November, the IRS broadcasts charges and inflation changes that have an effect on federal taxes for the approaching tax 12 months, together with tax brackets, commonplace deductions, tax credit, IRA guidelines, and extra. It’s essential to pay attention to any adjustments that the IRS makes to file your taxes correctly and keep away from overpayment or underpayment.