SuperTalk Mississippi
Featured News Latest News Lifestyle News Trending News

IRS raises tax brackets for 2022 to adjust for inflation

Image courtesy of the Internal Revenue Service

 

A rare benefit of higher inflation, your tax bill might be lower this year.  The IRS has raised tax brackets by about 3% from 2021.  For this years taxes, a married couple won’t need to pay the top 37% tax rate unless they make $647,850-dollars.  For individuals, that top bracket starts at $539,900-dollars.

The standard deduction for married couples filing jointly will go up to $25,900, an increase of $800-dollars.  For single taxpayers and married individuals filing separately  the standard deduction rises to $12,950 from the previous $12,550.

The other rates are:
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).
The lowest rate is 10% for incomes of single individuals with incomes of $10,275 or less ($20,550 for married couples filing jointly).

Each year the cost of living is considered, and the change happens automatically.

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

Related posts

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More