IRS Releases Inflation Adjustments for 2022
11.12.2021 | The IRS announced annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. The adjustments were announced in Revenue Procedure 2021-45.
The tax year 2022 adjustments are generally used on tax returns filed in 2023.
Here are the highlights:
- Marginal tax rates are unchanged for 2022, but brackets have been adjusted for inflation.
- Standard deductions have increased by $800 to $25,900 if married filing jointly and by $400 to $12,950 if single. The personal exemption remains at zero.
- Various thresholds were also adjusted for inflation, including the thresholds for the foreign earned income exclusion and estate exclusion.
- Various exemptions and limits were also adjusted, including the exemption for the Alternative Minimum Tax.
For complete details, check out the IRS announcement.