Here are some key changes to the tax code for 2022. Use this information to help manage your tax obligation, a practice that can pay rich benefits if reviewed throughout the year.
Tax brackets and rates
While there is much discussion in Congress and the Executive branch to raise individual tax rates (currently 0% to 37%), to date no legislation is gaining traction....yet. In the meantime, inflation is impacting the income brackets subject to tax. The cost of living calculation is raising the income brackets subject to tax by approximately 3% to 3.8%.
The higher standard deductions are still in place. For 2022, they are:
Key tax code changes
Outlined here are the major changes for current year tax laws. But stay tuned as there are a number of changes that are being proposed, but seem to stuck in Congressional discussion.
"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
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Mia Verc, CPA; Janice Papais, CPA
To better serve our clients and friends, to keep you up-to-date and informed, our blog is a resource for tax tips and overall accounting related articles. We hope you find this useful!