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SOCIALICON
SOCIALICON

2022 Tax Brackets and Limitations

Posted Sunday, November 14, 2021

Here are some of the numbers recently released by the IRS for 2022. Big leaps here given the massive jump in inflation (that’s what you get with deficit spending and free money)-

Single 2022
From To Rate Marginal Tax Total Tax
0 10,275 10% 1,028 1,028
10,276 41,775 12% 3,780 4,808
41,776 89,075 22% 10,406 15,214
89,076 170,050 24% 19,434 34,648
170,051* 215,950 32% 14,688 49,336
215,951 539,900 35% 113,383 162,718
539,901 forever 37%
Married Filing Jointly 2022
From To Rate Marginal Tax Total Tax
0 20,550 10% 2,055 2,055
20,551 83,550 12% 7,560 9,615
83,551 178,150 22% 20,812 30,427
178,151 340,100 24% 38,868 69,295
340,101* 431,900 32% 29,376 98,671
431,901 647,850 35% 75,583 174,254
647,851 forever 37%

* Start of Section 199A qualified business income phaseout for small business owners.

Standard Deduction Single 12,950
Standard Deduction Married Filing Joint 25,900
Social Security Wage Limit 147,000
IRA Contribution Limit 6,000 + 1,000 catch up
Roth Income Phaseout Single 129,000
Roth Income Phaseout Married Filing Joint 204,000
401k Employee 20,500 + 6,000 catch up
401k Employer 40,500
Max 401k Total 61,000
Max Gift Exclusion 16,000

However, the maximum capital gains exclusion for the sale of your primary residence (main home) remains at $500,000 and hasn’t changed since 1997. Bummer! Here are some additional resources-

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

https://www.irs.gov/pub/irs-drop/rp-21-45.pdf

https://www.irs.gov/pub/irs-drop/n-21-61.pdf

WCG is a full service consultation and tax preparation firm, and we look forward to working with you!