The Internal Revenue Service (IRS) announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions. Click here to view the full list. Here’s a summary of three provisions that may impact homeowners and homebuyers:
1. STANDARD DEDUCTION
- $25,900: for married couples filing jointly for the tax year 2022. This is up from $25,100 in 2021.
- $12,950: for single taxpayers and married individuals filing separately. This is from $12,550 in 2021.
- $19,400: for heads of households. This is up from $18,800 in 2021.
2. GIFT TAX EXCLUSION
- $16,000: annual gift tax exclusion for 2022. This is up from $15,000 in 2021.
- $12,060,000: This is up from $11,070,000 in 2021.
3. MARGINAL TAX BRACKET
- 37%: for incomes greater than $539,900 ($647,850 for married couples filing jointly)
- 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)
- 10%: for incomes of $10,275 or less ($20,550 for married couples filing jointly)
Do you have questions? Reach out today! We’re here to help!
Tim Erickson
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E: tim.erickson@goluminate.com
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Mark Henderson
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E: mark.henderson@goluminate.com
W: www.MarkHendersonMortgage.com