SuperTalk Mississippi
News Featured News Latest News Lifestyle 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

Stay up to date with all of Mississippi’s latest news by signing up for our free newsletter here

Copyright 2023 SuperTalk Mississippi Media. All rights reserved.

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