WASHINGTON - The Internal Revenue Service announced tax year 2022 annual inflation adjustments for more than 60 tax provisions, including lists of tax rates and other tax changes. The Income Procedure 2021-45 PDF provides details on these annual adjustments.

Highlights of the 2021-45 admissions procedure changes:

The tax year 2022 adjustments described below generally apply to tax returns filed in 2023.

The tax items for tax year 2022 of greatest interest to most taxpayers include the following dollar amounts:

The standard deduction for married couples filing jointly for tax year 2022 increases to $ 25,900 more than $ 800 the previous year. For single taxpayers and married individuals filing separately, the standard deduction increases to $ 12,950 for 2022, up to $ 400, and for heads of household, the standard deduction will be $ 19,400 for tax year 2022, until $ 600.

The personal exemption for fiscal year 2022 remains at 0, as it was for 2021, this elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act.

Marginal rates: For tax year 2022, the maximum tax rate remains 37% for single single filers with income above $ 539,900 ($ 647,850 for married couples filing jointly).
The other rates are:
35%, for income over $ 215,950 ($ 431,900 for married couples filing jointly);
32% for income over $ 170,050 ($ 340,100 for married couples filing jointly);
24% for income over $ 89,075 ($ 178,150 for married couples filing jointly);
22% for income greater than $ 41,775 ($ 83,550 for married couples filing a joint return);
12% for income over $ 10,275 ($ 20,550 for married couples filing jointly).
The lowest rate is 10% for the income of single people with income of $ 10,275 or less ($ 20,550 for married couples filing jointly).

For 2022, as in 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, as that limitation was removed by the Tax Cuts and Jobs Act.

The maximum amount of the Earned Income Tax Credit for tax year 2022 is $ 6,935 for qualified taxpayers who have three or more qualifying children, instead of $ 6,728 for tax year 2021. The income procedure contains a table that provides the maximum amount of the EITC for other categories, income thresholds and phase-outs.

For fiscal year 2022, the monthly limitation for the qualified transportation supplemental benefit and the monthly limitation for qualified parking increases to $ 280.

For taxable years beginning in 2022, the dollar cap on employee pay reductions for contributions to flexible healthcare spending arrangements increases to $ 2,850. For cafeteria plans that allow carry-over of unused amounts, the maximum carry-forward amount is $ 570, an increase of $ 20 from taxable years beginning in 2021.

For fiscal year 2022, participants who have self-only coverage in a Health Savings Account, the plan must have an annual deductible that is not less than $ 2,450, an increase of $ 50 from fiscal year 2021; but not more than $ 3,700, an increase of $ 100 beginning in fiscal year 2021. For self-service only coverage, the maximum out-of-pocket amount is $ 4,950, an increase of $ 150 from 2021. For fiscal year 2022, for family coverage, the annual deductible is not less than $ 4,950, instead of $ 4,800 in 2021; however, the deductible cannot be more than $ 7,400, an excess of $ 250 from the limit for tax year 2021. For family coverage, the out-of-pocket limit is $ 9,050 for tax year 2022, an increase of $ 300 with respect to fiscal year 2021.

The amount of modified adjusted gross income used by joint taxpayers to determine the reduction in the Lifetime Learning Credit provided in § 25A (d) (2) is not adjusted for inflation for taxable years beginning after December 31, 2020. The Lifetime Learning Credit is phased out for taxpayers with modified adjusted gross income greater than $ 80,000 ($ 160,000 for joint returns).

For tax year 2022, the foreign earned income exclusion is $ 112,000 instead of $ 108,700 for tax year 2021.

Estates of deceased persons who die in 2022 have a base exclusion amount of $ 12,060,000, compared to a total of $ 11,700,000 for estates of deceased persons who died in 2021.

The annual exclusion for gifts increases to $ 16,000 for calendar year 2022, instead of $ 15,000 for calendar year 2021.

The maximum credit allowed for adoptions for fiscal year 2022 is the amount of qualified adoption expenses of up to $ 14,890, instead of $ 14,440 for 2021