Even though the official numbers have not yet been published by the IRS, we’ve projected many of the key tax figures for 2022.
| Standard deduction | ||
|---|---|---|
| 2021 | Projected for 2022 | |
| Married filing jointly | $25,100 | $25,900 |
| Head of household | $18,800 | $19,400 |
| Single | $12,550 | $12,950 |
| Married filing separately | $12,550 | $12,950 |
| Standard deduction for dependent | Greater of $1,100 or $350 + earned income | Greater of $1,150 or $400 + earned income |
| Additional standard deduction for blind or aged (65 or older) | ||
| Single/Head of household | $1,700 | $1,750 |
| All others | $1,350 | $1,400 |
| Taxable income threshold for top 37% income tax bracket | ||
|---|---|---|
| 2021 | Projected for 2022 | |
| Married filing jointly | $628,300 | $647,850 |
| Head of household | $523,600 | $539,900 |
| Single | $523,600 | $539,900 |
| Married filing separately | $314,150 | $323,925 |
| Long-term capital gain 20% threshold (based on taxable income) | ||
|---|---|---|
| 2021 | Projected for 2022 | |
| Married filing jointly | $501,600 | $517,200 |
| Head of household | $473,750 | $488,500 |
| Single | $445,850 | $459,750 |
| Married filing separately | $250,800 | $258,600 |
| Alternative minimum tax (AMT) | ||
|---|---|---|
| 2021 | Projected for 2022 | |
| Maximum AMT exemption amount | ||
| Married filing jointly | $114,600 | $118,100 |
| Single/Head of household | $73,600 | $75,900 |
| Married filing separately | $57,300 | $59,050 |
| Exemption phaseout threshold | ||
| Married filing jointly | $1,047,200 | $1,079,800 |
| Single/Head of household | $523,600 | $539,900 |
| Married filing separately | $523,600 | $539,900 |
| 26% on AMTI* up to amount, 28% on AMTI above amount | ||
| Married filing separately | $99,950 | $103,050 |
| All others | $199,900 | $206,100 |
*Alternative minimum taxable income
| Kiddie tax: Child’s unearned income | ||
|---|---|---|
| 2021 | Projected for 2022 | |
| Above this amount taxed using parents’ tax rates | $2,200 | $2,300 |
| IRAs | ||
|---|---|---|
| 2021 | Projected for 2022 | |
| Contribution limits | ||
| Traditional and Roth IRAs (combined) | $6,000 ($7,000 if age 50 or older) | $6,000 ($7,000 if age 50 or older) |
| Roth IRA income phaseout range (contributions) | ||
| Single/Head of household | $125,000 to $140,000 | $129,000 to $144,000 |
| Married filing jointly | $198,000 to $208,000 | $204,000 to $214,000 |
| Married filing separately | $0 to $10,000 | $0 to $10,000 |
| Traditional IRA income phaseout range (deductibility) | ||
| 1. Covered by an employer-sponsored plan and filing as: | ||
| Single/Head of household | $66,000 to $76,000 | $68,000 to $78,000 |
| Married filing jointly | $105,000 to $125,000 | $109,000 to $129,000 |
| 2. Not covered by plan but filing joint return with covered spouse | $198,000 to $208,000 | $204,000 to $214,000 |
| 3. Married filing separately and either spouse is covered by plan | $0 to $10,000 | $0 to $10,000 |
| Estate planning | ||
|---|---|---|
| 2021 | Projected for 2022 | |
| Top gift, estate, and generation-skipping transfer (GST) tax rate | 40% | 40% |
| Annual gift tax exclusion | $15,000 | $16,000 |
| Noncitizen spouse annual gift tax exclusion | $159,000 | $164,000 |
| Gift tax and estate tax applicable exclusion amount | $11,700,0001 + DSUEA2 | $12,060,0001 + DSUEA2 |
| GST tax exemption | $11,700,000 | $12,060,000 |
1Basic exclusion amount
2Deceased spousal unused exclusion amount
We’ll continue to pass along timely, relevant information–providing fresh and interesting ways for you to engage and motivate your clients.