The changes for 2022’s tax year has been released, and it could change how much people pay when tax season rolls around in 2023.
The adjustments are due to the major increase in inflation that reached a 30 year high in October.
The standard deduction has been raised to $25,900 for 2022, an $800 increase for married couples. For single filers, the standard deduction will rise to $12,950 from this year’s $12,550.
There are seven brackets with changes and what you end up owing depends on your income.
2022 tax brackets for singles:
10% on earnings $0-$10,275
12% on earnings $10,276-$41,775
22% on earnings $41,776- $89,075
24% on earnings $89,076 -$170,050
32% on earnings $170,051-$215,950
35% on earnings $215,951-$539,900
2022 tax brackets for married filing jointly:
10% on earnings $0-$20,550
12% on earnings $20,551-$83,550
22% on earnings $83,551-$178,150
24% on earnings $178,151-$340,100
32% on earnings $340,101-$431,900
Income over $647,850 for couples will be taxed at 37%.
These changes usually happen annually to begin with, but they’re happening at a much higher rate than they normally would due to the spike in the consumer price index.
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