From inflation adjustments to the expiration of pandemic-related tax breaks to newly effective laws, here are some changes that could impact your 2022 taxes.
We’ve seen many tax-related changes these past two years, and the 2022 tax year is no exception. From inflation adjustments to the expiration of pandemic-related tax breaks to newly effective laws, here are some changes that could impact your taxes for 2022. Keep in mind, this list is not all-encompassing, is only meant for educational purposes and is not intended as tax advice.
As in years past, tax brackets, standard deduction amounts and contribution limits for 401(k) plans were adjusted for inflation. While contribution limits for IRAs stayed the same, the income thresholds for traditional IRA deductibility and Roth IRA eligibility increased.
10%$0 – $9,950$0 – $10,275$0 – $19,900$0 – $20,55012%$9,951 – $40,525$10,276 – $41,775$19,901 – $81,050$20,551 – $83,55022%$40,526 – $86,375$41,776 – $89,075$81,051 – $172,750$83,551 – $178,15024%$86,376 – $164,925$89,076 – $170,050$172,751 – $329,850$178,151 – $340,10032%$164,926 – $209,425$170,051 – $215,950$329,851 – $418,850$340,101 – $431,90035%$209,426 – $523,600$215,951 – $539,900$418,851 – $628,300$431,901 – $647,85037%Over $523,600Over $539,900Over $628,300Over $647,850
In 2021, taxpayers enjoyed several tax breaks that have since expired. If you were able to take advantage of these benefits, you could see a meaningful bump in your 2022 taxes.
In 2021, the maximum credit amount was temporarily increased to $3,600 for children under 6 years old and up to $3,000 for children ages 6 to 17 (which represented an increased maximum age). The credit was also fully refundable, meaning you could receive the credit even if it was larger than the amount of taxes you owed.
