Every year the IRS updates income limits for tax brackets.
They are adjusted to account for inflation so taxpayers don’t suffer “bracket creep.”
2022 tax brackets
Tax brackets are adjusted every year because of inflation and too avoid the “bracket creep.” The percentages Americans are taxed in the seven brackets is the same, but the income limits have been raised. Read more about it here.
The adjustment took effect January 1, 2022, so it does not apply to your 2021 tax return. The income threshold is based on the Chained Consumer Price Index. However the tax percentage has remained the same for all seven brackets at: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
In 2022, the standard deduction will increase by $400 for single filers or $6oo for head of household, and $800 for married filing jointly.
How you file your taxes could save you money.
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