What’s New for 2022
A Few Tax Changes and Key Amounts for the 2022 Tax Year
Although the tax rates didn’t change, the income tax brackets for 2022 are slightly wider than for 2021. The difference is due to inflation during the 12-month period from September 2020 to August 2021, which is used to figure the adjustments.
The enhancements that were made for 2021 Earned Income Tax Credits were not extended for 2022. The minimum age jumps back to 25 and the maximum back to 65. Other changes also apply.
Tax rates on long-term capital gains (i.e., gains from the sale of capital assets held for at least one year) and qualified dividends did not change for 2022. However, the income thresholds to qualify for the various rates were adjusted for inflation. Maximum tax rate is 20%.
These are just a few of the changes to Tax Returns for 2022. If you need more information, please call, or email me.