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