Did you know that the government is planning changes to how taxes are collected? That means there are new things to keep in mind when filing your income tax return. In this guide, we will explore what you need to know about 2022 taxes and provide tips on how to avoid any issues with the IRS.
Table Of Contents
- Income Taxes For Single Filers
- Income Taxes For Married filing jointly or qualifying widower
- Income Taxes For Head of Household
- Income Taxes For Estates and Trusts
- Standard Tax Deductions
- Long-Term Capital gains and qualified dividend tax
- Short-Term Capital gains and qualified dividend tax
- Child Tax Credit
- IRA contributions
- SEP IRA Contributions
- SIMPLE IRA and Simple 401(k) Contributions
- 401(k) Contributions
- 403(b) Contributions
- 457 Plan Contributions
- SAR-SEP Plan Contributions
- Required Minimum Distributions
- Social Security
- Medicare Part B Premiums
Income Taxes For Single Filers
| Taxable Income | Tax Rate |
|---|---|
| $0–$10,275 | 10% of taxable income |
| $10,276–$41,775 | $1,027.50 plus 12% of the amount over $10,275 |
| $41,776–$89,075 | $4,807.50 plus 22% of the amount over $41,775 |
| $89,076–$170,050 | $15,213.50 plus 24% of the amount over $89,075 |
| $170,051–$215,950 | $34,647.50 plus 32% of the amount over $170,050 |
| $215,951–$539,900 | $49,335.50 plus 35% of the amount over $215,950 |
| $539,901+ | $162,718 plus 37% of the amount over $539,900 |
Income Taxes For Married filing jointly or qualifying widower
| Taxable Income | Tax Rate |
|---|---|
| $0–$20,550 | 10% of taxable income |
| $20,551–$83,550 | $2,055 plus 12% of the amount over $20,550 |
| $83,551–$178,150 | $9,615 plus 22% of the amount over $83,550 |
| $178,151–$340,100 | $30,427 plus 24% of the amount over $178,150 |
| $340,101–$431,900 | $69,295 plus 32% of the amount over $340,100 |
| $431,901–$647,850 | $98,671 plus 35% of the amount over $431,900 |
| $647,851+ | $174,253.50 plus 37% of the amount over $647,850 |
Income Taxes For Head of Household
| Taxable Income | Tax Rate |
|---|---|
| $0–$14,650 | 10% of taxable income |
| $14,651–$55,900 | $2,465 plus 12% of the amount over $14,650 |
| $55,901–$89,050 | $6,415 plus 22% of the amount over $55,900 |
| $89,051–$170,050 | $13,708 plus 24% of the amount over $89,050 |
| $170,051–$215,950 | $33,148 plus 32% of the amount over $170,050 |
| $215,951–$539,900 | $47,836 plus 35% of the amount over $215,950 |
| $539,901+ | $161,218.50 plus 37% of the amount over $539,900 |
Income Taxes For Estates and Trusts
| Taxable Income | Tax Rate |
|---|---|
| $0–$2,750 | 10% of taxable income |
| $2,751–$9,850 | $275 plus 24% of the amount over $2,750 |
| $9,851–$13,450 | $1,979 plus 35% of the amount over $9,850 |
| $13,451+ | $3,239 plus 37% of the amount over $13,450 |
Estate tax and generation-skipping transfer tax
- $12.06 million exemption; 40% tax rate
- $24.12 million married couple; 40% tax rate
Annual gift tax exclusion
- $16,000
Standard Tax Deductions
| Filing Status | Standard Deduction |
|---|---|
| Married filing jointly | $25,900 |
| Head of household | $19,400 |
| Single/married filing separately | $12,950 |
| Additional (age 65/older, or blind): Married filing jointly | $1,400 |
| Additional (age 65/older, or blind): Single, not a surviving spouse | $1,750 |
Long-Term Capital gains and qualified dividend tax
| Filing status/income | Long-term capital gains & qualified dividend rate |
|---|---|
| Single: $0–$41,675 | 0% |
| Joint: $0–$83,350 | 0% |
| Head of household: $0–$55,800 | 0% |
| Single: $41,676–$459,750 | 15% |
| Joint: $83,351–$517,200 | 15% |
| Head of household: $55,801–$488,500 | 15% |
| Single: $459,751+ | 20% |
| Joint: $517,201+ | 20% |
| Head of household: $488,501+ | 20% |
Short-Term Capital gains and qualified dividend tax
| Filing status/income | Long-term capital gains & qualified dividend rate |
|---|---|
| Single: $0–$10,275 | 10% |
| Joint: $0–$20,550 | 10% |
| Head of household: $0–$14,650 | 10% |
| Single: $10,276–$41,775 | 12% |
| Joint: $20,551–$83,550 | 12% |
| Head of household: $14,651–$55,900 | 12% |
| Single: $41,776–$89,075 | 22% |
| Joint: $83,551–$178,150 | 22% |
| Head of household: $55,901–$89,050 | 22% |
| Single: $89,076–$170,050 | 24% |
| Joint: $178,151–$340,100 | 24% |
| Head of household: $89,051–$170,050 | 24% |
| Single: $170,051–$215,950 | 32% |
| Joint: $340,101–$431,900 | 32% |
| Head of household: $170,051–$215,950 | 32% |
| Single: $215,951–$539,900 | 35% |
| Joint: $431,901–$647,850 | 35% |
| Head of household: $215,951–$539,900 | 35% |
| Single: $539,901+ | 37% |
| Joint: $647,851+ | 37% |
| Head of household: $539,901+ | 37% |
Child Tax Credit
| Per child under age 6 | $3,600 |
| Per child age 6-17 | $3,000 |
| Per non-qualifying dependent | $500 |
| Phase-outs | AGI over $75,000 for single filers |
| Phase-outs | AGI over $112,500 for head of household |
| Phase-outs | AGI over $150,000 for joint |
IRA contributions
- Traditional or Roth IRA: $6,000
- Catch-up—age 50 or older: $1,000
Phase-out range for deductible contributions to traditional IRAs
| Single/head of household | $68,000 – $78,000 |
| Married filing jointly | $109,000 – $129,000 |
| Married filing separately | $0 – $10,000 |
| Non-covered participant with a covered-participant spouse | $204,000 – $214,000 |
Phase-out for Roth contributions
| Single/head of household | $129,000–$144,000 |
| Married filing jointly | $204,000–$214,000 |
| Married filing separately | $0–$10,000 |
SEP IRA Contributions
| Maximum percentage of compensation | 25% |
| Maximum contribution | $61,000 |
| SEP minimum compensation | $650 |
SIMPLE IRA and Simple 401(k) Contributions
| Employee contribution | $14,000 |
| SIMPLE IRA catch-up: age 50 or older | $3,000 |
401(k) Contributions
| Elective employee deferral | $20,500 |
| Catch-up—age 50 or older | $6,500 |
| Maximum contribution | $61,000 |
| Maximum employer percentage deduction limit (of eligible payroll) | 25% |
| Covered compensation limit | $305,000 |
| Highly compensated employee | $135,000 |
403(b) Contributions
| Elective employee deferral$20,500Catch-up—age 50 or older$6,500403(b) TSA catch-up with 15+ years of service with current employer | $3,000 |
| Maximum contribution | $61,000 |
| Maximum employer percentage deduction limit (of eligible payroll) | 25% |
| Covered compensation limit | $305,000 |
| Highly compensated employee | $135,000 |
457 Plan Contributions
| Elective employee deferral | $20,500 |
| Catch-up—age 50 or older | $6,500 |
| Maximum contribution | $61,000 |
| Maximum employer percentage deduction limit (of eligible payroll) | 25% |
| Covered compensation limit | $305,000 |
| Highly compensated employee | $135,000 |
SAR-SEP Plan Contributions
| Elective employee deferral | $20,500 |
| Catch-up—age 50 or older | $6,500 |
| Maximum contribution | $61,000 |
| Maximum employer percentage deduction limit (of eligible payroll) | 25% |
| Covered compensation limit | $305,000 |
| Highly compensated employee | $135,000 |
Required Minimum Distributions
| Age | Factor |
|---|---|
| 72 | 27.4 |
| 73 | 26.5 |
| 74 | 25.5 |
| 75 | 24.6 |
| 76 | 23.7 |
| 77 | 22.9 |
| 78 | 22.0 |
| 79 | 21.1 |
| 80 | 20.2 |
| 81 | 19.4 |
| 82 | 18.5 |
| 83 | 17.7 |
| 84 | 16.8 |
| 85 | 16.0 |
| 86 | 15.2 |
| 87 | 14.4 |
| 88 | 13.7 |
| 89 | 12.9 |
| 90 | 12.2 |
| 91 | 11.5 |
| 92 | 10.8 |
| 93 | 10.1 |
| 94 | 9.5 |
| 95 | 8.9 |
| 96 | 8.4 |
| 97 | 7.8 |
| 98 | 7.3 |
| 99 | 6.8 |
| 100 | 6.4 |
Social Security
Full Retirement Age (FRA)
The maximum monthly benefit for workers retiring at full retirement age: $3,148
| Year of Birth | Full Retirement Age |
|---|---|
| 1943-1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
Thresholds before Social Security Benefits are reduced
| Under full retirement age (FRA) for full year | $19,560 |
| Benefit reduced $1 for every $2 above the threshold | $1,630 a month |
| FRA year (up to FRA month) | $51,960 |
| Benefit reduced $1 for every $3 above the threshold | $4,330 a month |
Taxation of Social Security Benefits
| Taxation | Single | Married Filing Jointly |
|---|---|---|
| Tax-free | Below $25,000 | Below $32,000 |
| 50% Taxable | $25,000 – $34,000 | $32,000 – $44,000 |
| 85% Taxable | $34,001+ | $44,001+ |
Maximum taxable earnings subject to FICA taxes
| Social Security (OASDI only) | $147,000 |
| HI (Medicare) maximum | No Limit |
| OASDI tax rate | 12.4% self-employed, 6.2% employee & employer |
| HI tax rate | 2.9% self-employed, 1.45% employee & employer |
Medicare Part B Premiums
| Filing status | Monthly Payment |
|---|---|
| Single: $91,000 or less | $170.10 |
| Joint: $182,000 or less | $170.10 |
| Married, filing separately: $91,000 or less | $170.10 |
| Single: $91,001 to $114,000 | $238.10 |
| Joint: $182,001-$228,000 | $238.10 |
| Married, filing separately | Not Applicable |
| Single: $114,001-$142,000 | $340.20 |
| Joint: $228,001-$284,000 | $340.20 |
| Married, filing separately | Not Applicable |
| Single: $142,001-$170,000 | $442.30 |
| Joint: $284,001-$340,000 | $442.30 |
| Married, filing separately | Not Applicable |
| Single: $170,001-$499,999 | $544.30 |
| Joint: $340,001-$749,999 | $544.30 |
| Married, filing separately: $91,001-$408,999 | $544.30 |
| Single: $500,000+ | $578.30 |
| Joint: $750,000+ | $578.30 |
| Married, filing separately: $409,000+ | $578.30 |