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Changes to Tax 1040

There are a few changes this year to the 1040 tax form. Depending on how you file, these adjustments will also affect your bottom line. Here’s what’s different:

The standard deduction is going up.

A standard deduction is a static deduction that anyone can claim, and it will increase depending how you file your 2022 federal return this year. According to the IRS, here are the new changes:

  • Married couples filing jointly: $25,900, up $800 from 2021
  • Single taxpayers and married individuals filing separately: $12,950 for 2022, up $400 from 2021
  • Heads of households: $19,400, up $600 from 2021

Tax bracket changes

According to the IRS, the 2022 tax brackets will also be adjusted. A tax bracket is the range of incomes subject to an income tax rate. After the standard deduction and/or other itemized deductions and tax breaks have been reflected, here are the new tax brackets:

For married individuals filing jointly:

  • 10%: Taxable income up to $20,550 (up from $19,900 for 2021)
  • 12%: Taxable income between $20,550 to $83,550 (up from $19,900 to $81,050 for 2021)
  • 22%: Taxable income between $83,550 to $178,150 (up from $81,050 to $172,750 for 2021)
  • 24%: Taxable income between $178,150 to $340,100 (up from $172,750 to $329,850 for 2021)
  • 32%: Taxable income between $340,100 to $431,900 (up from $329,850 to $418,850 for 2021)
  • 35%: Taxable income between $431,900 to $647,850 (up from $418,850 to $628,300 for 2021)
  • 37%: Taxable income over $647,850 (up from $628,300 for 2021)

For individual single taxpayers:

  • 10%: Taxable income up to $10,275 (up from $9,950 for 2021)
  • 12%: Taxable income between $10,275 to $41,775 (up from $9,950 to $40,525 for 2021)
  • 22%: Taxable income between $41,775 to $89,075 (up from $40,525 to $86,375 for 2021)
  • 24%: Taxable income between $89,075 to $170,050 (up from $86,375 to $164,925 for 2021)
  • 32% Taxable income between $170,050 to $215,950 (up from $164,925 to $209,425 for 2021)
  • 35%: Taxable income between $215,950 to $539,900 (up from $209,425 to $523,600 for 2021)
  • 37%: Taxable income over $539,900 (up from $523,600 for 2021)

As inflation increases, these tax bracket changes will likely not equate to any major savings, but retirees with a fixed income and receiving the standard deduction will pay less in taxes.

Earned Income Tax Credit

To help counter inflation, the IRS increased the maximum Earned Income Tax Credit in 2022 to $6,935. This applies to qualifying taxpayers with three or more qualifying children, up from the $6,728 credit in 2021.

View the changes here >

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