(Gray News) – The Internal Revenue Service is increasing the standard tax deduction to account for inflation in 2022.
The adjustments generally apply to income tax returns that will be filed in 2023, depending on the IRS.
The changes represent more than 60 tax provisions, but the IRS has said the 2017 Tax Cuts and Jobs Act rates will not be changed.
Of interest to many taxpayers, the standard deduction for married couples filing jointly for tax year 2022 will increase to $ 25,900, an increase of $ 800 from the previous year.
According to the IRS, single taxpayers and those who are married but file separately, the standard deduction increases from $ 12,550 to $ 12,950, an increase of about 3.2%.
For heads of households, the standard deduction will be $ 19,400 for the 2022 tax year.
Here’s a breakdown of marginal rates by tax bracket, according to the IRS:
- 37% for single taxpayers with income over $ 539,900 ($ 647,850 for married couples filing jointly)
- 35% for income over $ 215,950 ($ 431,900 for married couples declaring jointly)
- 32% for income over $ 170,050 ($ 340,100 for married couples declaring jointly)
- 24% for income over $ 89,075 ($ 178,150 for married couples filing jointly)
- 22% for income over $ 41,775 ($ 83,550 for married couples filing jointly)
- 12% for income over $ 10,275 ($ 20,550 for married couples filing jointly)
- 10% for the income of unattached individuals with an income of $ 10,275 or less ($ 20,550 for married couples applying jointly)
It is standard practice that adjustments are made each year to reflect consumer prices. The flat-rate tax deduction has increased by around 1.2% for tax year 2021.
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