The massive surge in consumer pricing has caused inflation adjustments for the 2022 tax year. This applies to federal income brackets and the standard deduction.
Tax bracket thresholds are now rising and tax bracket cut off points increased around 3%. This is the biggest increase in four years and will impact 2022’s taxes when they’re filed in 2023.
This happens annually but it’s at a much faster rate this time around according to Fox Business.
For single people the federal income tax brackets are as follows:
10%: Taxable income up to $10,275
12%: Taxable income between $10,275 and $41,775
22%: Taxable income between $41,775 to $89,075
24%: Taxable income between $89,075 to $170,050
32%: Taxable income between $170,050 to $215,950
35%: Taxable income between $215,950 to $539,900
37%: Taxable income over $539,900
For married individuals the federal income tax brackets are as follows:
10%: Taxable income up to $20,550
12%: Taxable income between $20,550 to $83,550
22%: Taxable income between $83,550 to $178,150
24%: Taxable income between $178,150 to $340,100
32%: Taxable income between $340,100 to $431,900
35%: Taxable income between $431,900 to $647,850
37%: Taxable income over $647,850
Standard deduction will go up to to $25,900 from 25,100 for married filing jointly, and from $12,950 to $12,550 for single filers.
Related: IRS tax refunds missing: Millions of people waiting for thousands of dollars
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