![]() ![]() The earned income tax credit (EITC) is a significant tax credit for many taxpayers. Changes to the Maximum Earned Income Tax Credit for 2022 The additional standard deduction amount doubles if you are 65 or older and blind. Individuals filing as single or head of household can claim $1,750. If you are over 65 years old or blind, you can also claim an additional $1,400 as part of your standard deduction. Lastly, married couples filing jointly can claim a standard deduction of $25,900 for tax year 2022. The 2022 standard deduction for taxpayers filing as heads of household increased to $19,400. The IRS increased the standard deduction in 2022 for single filers and married couples filing separately to $12,950. The standard deduction reduces your taxable income. ![]() Increases to the Standard Deductions in 2022 Taxpayers who owed taxes for the tax year 2021 may want to review the changes for tax year 2022 to determine if they need to adjust their federal tax withholding based on their estimated taxable income. Prior year tax information is also available on the IRS website. Information regarding 2022 federal income tax withholding methods can be found in IRS Publication 15-T. Other tax rates for 2022 are: 2022 Tax Brackets For Single Filers Are:ģ7% Over $539,900 2022 Tax Brackets For Married Couples Filing Jointly Are:ģ7% Over $647,850 2022 Tax Brackets For Married Couples Filing Separately Are:ģ7% Over $332,925 2022 Tax Brackets For Head Of Household Filers Are: However, the income thresholds for all tax brackets are increasing in 2022 to reflect the rise in inflation.įor example, a tax rate of 24% applies to taxpayers earning between $178,151 and $340,100 for married couples. ![]() The lowest tax bracket remains at 10%, and the highest tax bracket remains at 37%. The IRS is not changing the tax brackets set by the Tax Cuts and Jobs Act. Related: Do I have to Issue a 1099 to Contractors Paid Through 3rd-Party Platforms? Changes in Tax Brackets and Tax Rates for 2022 Below is a summary of a few changes to new tax laws that impact the average taxpayer for the tax year 2022. Inflation adjustments impact tax brackets, deductions, estate tax, standard deductions, retirement contributions, and many other tax provisions. Many IRS inflation adjustments applicable to 2022 tax returns could significantly impact individual income tax filers. 2022 Tax Changes Which Will Affect Your Tax Return in 2023 ![]()
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