2022 Key Numbers

2022 Key Numbers

February 22, 2022
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INDIVIDUAL INCOME TAX PLANNING 

 

Adoption Credit 

 

Adoption credit

2021

2022

Maximum credit

$14,440

$14,890

Phaseout threshold amount

$216,660

$223,410

Completed phaseout amount after

$256,660

$263,410

 

Alternative Minimum Tax (AMT)

 

Maximum AMT exemption amount

2021

2022

Married filing jointly or surviving spouse

$114,600

$118,100

Single or head of household

$73,600

$75,900

Married filing separately

$57,300

$59,050

 

AMT income exemption phaseout threshold

2021

2022

Married filing jointly or surviving spouse

$1,047,200

$1,079,800

Single or head of household

$523,600

$539,900

Married filing separately

$523,600

$539,900

 

AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount)

2021

2022

All taxpayers except married filing separately

$199,900

$206,100

Married filing separately

$99,950

$103,050

 

Charitable Deductions

 

Use of auto

2021

2022

Deductible standard mileage rate

$0.14

$0.14

 

Charitable fundraising "insubstantial benefit" limitation

2021

2022

Low-cost article (re: unrelated business income)

$11.30

$11.70

 

Gifts to donor in return for contribution

2021

2022

Token gift maximum cost1

$11.30

$11.70

Minimum contribution amount1

$56.50

$58.50

2% threshold amount2

$113

$117

 

1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum.

2 Charitable contribution is fully deductible if the benefit received by the donor doesn't exceed the lesser of the threshold amount or 2% of the amount of the contribution.

 

Child Tax Credit

Amount of credit

2021

 2022

Maximum credit per qualifying child

$3,000 ($3,600 for children under age 6)

$2,000

Nonrefundable credit for dependents who are not qualifying children

$500

$500

 

Phaseout -- credit reduced by $50 for each $1,000 or fraction thereof of MAGI over (but not to be reduced below

$2,000):

2021

2022

Married filing jointly or surviving spouse

$150,000

N/A

Head of household

$112,500

N/A

Single or married filing separately

$75,000

N/A

 

Phaseout -- any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:

2021

2022

Married filing jointly

$400,000

$400,000

All other filing status

$200,000

$200,000

 

Refundability -- up to specified percentage of earned income in excess of specified amount1

2021

2022

Percentage

N/A

15%

Amount

N/A

$2,500

Maximum refundable amount of credit

Fully refundable1

$1,500

 

 1 For 2021, generally fully refundable; partially refundable if no principal place of abode in U.S. for one-half of year.

  

Classroom Expenses of Elementary and Secondary School Teachers

Classroom expense deduction

2021

2022

Maximum above-the-line deduction

$250

$300

 

Earned Income Tax Credit (EITC)

Investment income limit

2021

2022

Excessive investment income limit ("disqualified income limit")

$10,000

$10,300

 

Maximum amount of EITC per number of children

2021

2022

0 children

$1,502

$560

1 child

$3,618

$3,733

2 children

$5,980

$6,164

3 or more children

$6,728

$6,935

 

Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)

2021

2022

0 children

$9,820

$7,320

1 child

$10,640

$10,980

2 or more children

$14,950

$15,410

 

Threshold phaseout amount for joint filers per number of children

2021

2022

0 children

$17,560

$15,290

1 child

$25,470

$26,260

2 children

$25,470

$26,260

3 or more children

$25,470

$26,260

 

Threshold phaseout amount for other filers per number of children

2021

2022

0 children

$11,610

$9,160

1 child

$19,520

$20,130

2 children

$19,520

$20,130

3 or more children

$19,520

$20,130

 

Completed phaseout amount for joint filers per number of children

2021

2022

0 children

$27,380

$22,610

1 child

$48,108

$49,622

2 children

$53,865

$55,529

3 or more children

$57,414

$59,187

 

Completed phaseout amount for other filers per number of children

2021

2022

0 children

$21,430

$16,480

1 child

$42,158

$43,492

2 children

$47,915

$49,399

3 or more children

$51,464

$53,057

 

Expatriation

Covered expatriate

2021

2022

An individual with "average annual net income tax" of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)

$172,000

$178,000

IRC §877A(3) exclusion amount

$744,000

$767,000

 

Foreign Earned Income

Amount excluded from income

2021

2022

Exclusion amount

$108,700

$112,000

 

Itemized Deductions

Phaseout threshold

2021

2022

Married filing jointly

N/A

N/A

Head of household

N/A

N/A

Unmarried

N/A

N/A

Married filing separately

N/A

N/A

Kiddie Tax

Unearned income limit

2021

2022

Amount exempt from tax

$1,100

$1,150

Additional amount taxed at child's rate

$1,100

$1,150

Unearned income over this amount generally taxed at parents' tax rates

$2,200

$2,300

 

Parent's election

2021

2022

Election to include child's income on parent's return -- child's gross income requirement

$1,100 - $11,000

$1,150 - $11,500

 

AMT

2021

2022

AMT exemption for child subject to kiddie tax

Lesser of $7,950 + child's earned income or $73,600

Lesser of $8,200 + child's earned income or $75,900

 

Medicare Tax (additional payroll tax and unearned income contribution tax)

Payroll tax

2021

2022

Additional Medicare payroll tax (and self-employment tax) percentage rate

0.90%

0.90%

 

Applies to

wages/self-employment income exceeding

2021

2022

Individuals

$200,000

$200,000

Married filing jointly

$250,000

$250,000

Married filing separately

$125,000

$125,000

 

Tax on unearned income

2021

2022

Unearned income Medicare contribution tax rate

3.80%

3.80%

 

Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding

2021

2022

Individuals

$200,000

$200,000

Married filing jointly

$250,000

$250,000

Married filing separately

$125,000

$125,000

 

Nanny Tax

Compensation threshold

2021

2022

Domestic employee coverage threshold

$2,300

$2,400

 

Personal Exemption Amount

Amount

2021

2022

Personal exemption amount

N/A

N/A

 

Married filing jointly

2021

2022

Phaseout threshold amount

N/A

N/A

Completed phaseout amount after

N/A

N/A

 

Head of household

2021

2022

Phaseout threshold amount

N/A

N/A

Completed phaseout amount after

N/A

N/A

 

Unmarried

2021

2022

Phaseout threshold amount

N/A

N/A

Completed phaseout amount after

N/A

N/A

 

Married filing separately

2021

2022

Phaseout threshold amount

N/A

N/A

Completed phaseout amount after

N/A

N/A

 

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals

2021

2022

Maximum credit amount

$1,000

$1,000

 

Applicable percentage of 50% applies to AGI

2021

2022

Joint Return

$0 - $39,500

$0 - $41,000

Head of Household

$0 - $29,625

$0 - $30,750

Other

$0 - $19,750

$0 - $20,500

 

Applicable percentage of 20% applies to AGI

2021

2022

Joint Return

$39,501 - $43,000

$41,001 - $44,000

Head of Household

$29,626 - $32,250

$30,751 - $33,000

Other

$19,751 - $21,500

$20,501 - $22,000

 

Applicable percentage of 10% applies to AGI

2021

2022

Joint Return

$43,001 - $66,000

$44,001 - $68,000

Head of Household

$32,251 - $49,500

$33,001 - $51,000

Other

$21,501 - $33,000

$22,001 - $34,000

 

Applicable percentage of 0% applies to AGI

2021

2022

Joint Return

Over $66,000

Over $68,000

Head of Household

Over $49,500

Over $51,000

Other

Over $33,000

Over $34,000

 

Standard Deductions

Amounts

2021

2022

Married filing jointly or surviving spouse

$25,100

$25,900

Head of household

$18,800

$19,400

Unmarried

$12,550

$12,950

Married filing separately

$12,550

$12,950

Dependent--Standard deduction cannot exceed the greater of:

$1,100 or $350 + earned income

$1,150 or $400 + earned income

Additional deduction for aged or blind (single or head of household)

$1,700

$1,750

Additional deduction for aged or blind (all other filing statuses)

$1,350

$1,400

 

Standard Mileage Rates

Applicable rates

2021

2022

Use of auto for business purposes (cents per mile)

$0.56

$0.585

Use of auto for medical purposes (cents per mile)

$0.16

$0.18

Use of auto for moving purposes (cents per mile)

$0.16

$0.18

 

 

2022 FEDERAL INCOME TAX RATE SCHEDULES (Individuals, Trusts, and Estates)

 

Single Taxpayers

 

If taxable income is:

Your tax is:

Not over $10,275

10% of taxable income

Over $10,275 to $41,775

$1,027.50 + 12% of the excess over $10,275

Over $41,775 to $89,075

$4,807.50 + 22% of the excess over $41,775

Over $89,075 to $170,050

$15,213.50 + 24% of the excess over $89,075

Over $170,050 to $215,950

$34,647.50 + 32% of the excess over $170,050

Over $215,950 to $539,900

$49,335.50 plus 35% of the excess over

$215,950

Over $539,900

$162,718 plus 37% of the excess over

$539,900

 

Married Filing Jointly and Surviving Spouses

If taxable income is:

Your tax is:

Not over $20,550

10% of taxable income

Over $20,550 to $83,550

$2,055 + 12% of the excess over $20,550

Over $83,550 to $178,150

$9,615 plus 22% of the excess over $83,550

Over $178,150 to $340,100

$30,427 plus 24% of the excess over $178,150

Over $340,100 to $431,900

$69,295 plus 32% of the excess over $340,100

Over $431,900 to $647,850

$98,671 plus 35% of the excess over $431,900

Over $647,850

$174,253.50 plus 37% of the excess over

$647,850

 

Married Individuals Filing Separately

If taxable income is:

Your tax is:

Not over $10,275

10% of taxable income

Over $10,275 to $41,775

$1,027.50 + 12% of the excess over $10,275

Over $41,775 to $89,075

$4,807.50 plus 22% of the excess over

$41,775

Over $89,075 to $170,050

$15,213.50 plus 24% of the excess over

$89,075

Over $170,050 to $215,950

$34,647.50 plus 32% of the excess over

$170,050

Over $215,950 to $323,925

$49,335.50 plus 35% of the excess over

$215,950

Over $323,925

$87,126.75 plus 37% of the excess over

$323,925

 

Heads of Household

If taxable income is:

Your tax is:

Not over $14,650

10% of taxable income

Over $14,650 to $55,900

$1,465 + 12% of the excess over $14,650

Over $55,900 to $89,050

$6,415 plus 22% of the excess over $55,900

Over $89,050 to $170,050

$13,708 plus 24% of the excess over $89,050

Over $170,050 to $215,950

$33,148 plus 32% of the excess over $170,050

Over $215,950 to $539,900

$47,836 plus 35% of the excess over $215,950

Over $539,900

$161,218.50 plus 37% of the excess over

$539,900

 

Trusts and Estates

If taxable income is:

Your tax is:

Not over $2,750

10% of taxable income

Over $2,750 to $9,850

$275 + 24% of the excess over $2,750

Over $9,850 to $13,450

$1,979 + 35% of the excess over $9,850

Over $13,450

$3,239 + 37% of the excess over $13,450

2021 FEDERAL INCOME TAX RATE SCHEDULES (Individuals, Trusts, and Estates)

Single Taxpayers

If taxable income is:

Your tax is:

Not over $9,950

10% of taxable income

Over $9,950 to $40,525

$995 + 12% of the excess over $9,950

Over $40,525 to $86,375

$4,664 + 22% of the excess over $40,525

Over $86,375 to $164,925

$14,751 + 24% of the excess over $86,375

Over $164,925 to $209,425

$33,603 + 32% of the excess over $164,925

Over $209,425 to $523,600

$47,843 plus 35% of the excess over $209,425

Over $523,600

$157,804.25 plus 37% of the excess over

$523,600

 

Married Filing Jointly and Surviving Spouses

If taxable income is:

Your tax is:

Not over $19,900

10% of taxable income

Over $19,900 to $81,050

$1,990 + 12% of the excess over $19,900

Over $81,050 to $172,750

$9,328 plus 22% of the excess over $81,050

Over $172,750 to $329,850

$29,502 plus 24% of the excess over $172,750

Over $329,850 to $418,850

$67,206 plus 32% of the excess over $329,850

Over $418,850 to $628,300

$95,686 plus 35% of the excess over $418,850

Over $628,300

$168,993.50 plus 37% of the excess over $628,300

 

Married Individuals Filing Separately

If taxable income is:

Your tax is:

Not over $9,950

10% of taxable income

Over $9,950 to $40,525

$995 + 12% of the excess over $9,950

Over $40,525 to $86,375

$4,664 plus 22% of the excess over $40,525

Over $86,375 to $164,925

$14,751 plus 24% of the excess over $86,375

Over $164,925 to $209,425

$33,603 plus 32% of the excess over $164,925

Over $209,425 to $314,150

$47,843 plus 35% of the excess over $209,425

Over $314,150

$84,496.75 plus 37% of the excess over

$314,150

 

Heads of Household

If taxable income is:

Your tax is:

Not over $14,200

10% of taxable income

Over $14,200 to $54,200

$1,420 + 12% of the excess over $14,200

Over $54,200 to $86,350

$6,220 plus 22% of the excess over $54,200

Over $86,350 to $164,900

$13,293 plus 24% of the excess over $86,350

Over $164,900 to $209,400

$32,145 plus 32% of the excess over $164,900

Over $209,400 to $523,600

$46,385 plus 35% of the excess over $209,400

Over $523,600

$156,355 plus 37% of the excess over

$523,600

 

Trusts and Estates

If taxable income is:

Your tax is:

Not over $2,650

10% of taxable income

Over $2,650 to $9,550

$265 + 24% of the excess over $2,650

Over $9,550 to $13,050

$1,921 + 35% of the excess over $9,550

Over $13,050

$3,146 + 37% of the excess over $13,050

 

BUSINESS PLANNING

Adoption Assistance Programs

Adoption assistance

2021

2022

Maximum amount that can be excluded from employee's gross income

$14,440

$14,890

Phaseout threshold amount

$216,660

$223,410

Completed phaseout amount after

$256,660

$263,410

 

Earnings Subject to FICA Taxes (Taxable Wage Base)

FICA tax

2021

2022

Maximum annual earnings subject to Social Security taxes

$142,800

$147,000

Social Security and Medicare combined tax rate

15.30%1

15.30%1

OASDI portion (Social Security)

12.40%

12.40%

Hospital Insurance portion (Medicare)

2.90%1

2.90%1

1 An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).

 

Health Insurance Deduction for Self-Employed

Health insurance premiums

2021

2022

Deduction for health insurance premiums paid by self-employed persons

100%

100%

 

Qualified Transportation Fringe Benefits

Qualified transportation fringe benefits

2021

2022

Commuter vehicles and transit pass monthly exclusion amount

$270

$280

Qualified parking monthly exclusion amount

$270

$280

Qualified bicycle commuting reimbursement fringe benefit (monthly amount)

N/A

N/A

  

Section 179 Expensing

Section 179 expensing

2021

2022

Maximum amount that may be deducted under IRC Section 179

$1,050,000

$1,080,000

Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount

$2,620,000

$2,700,000

 

Small Business Tax Credit for Providing Healthcare Coverage

Amount of credit

2021

2022

Maximum credit percentage

50%

50%

 

Partial credit

2021

2022

Number of full-time equivalent employees (FTEs) fewer than:

25

25

Maximum average annual wages less than:

$55,600

$57,400

 

Full credit

2021

2022

Number of full-time equivalent employees (FTEs) no more than:

10

10

Maximum average annual wages less than or equal to:

$27,800

$28,700

 

Special Additional First-Year Depreciation Allowance

Bonus depreciation

2021

2022

"Bonus" depreciation for qualified property acquired and placed in service during specified time periods

100%

100%

 

Standard Mileage Rate (Per Mile)

Business use of auto

2021

2022

Use of auto for business purposes

$0.56

$0.585

 

EDUCATION PLANNING

American Opportunity and Lifetime Learning Credits

Education credits

2021

2022

Maximum American Opportunity credit

$2,500

$2,500

Maximum Lifetime Learning credit

$2,000

$2,000

MAGI phaseout range for American Opportunity credit

2021

2022

Single--phaseout threshold amount

$80,000

$80,000

Single--completed phaseout amount after

$90,000

$90,000

Married filing jointly--phaseout threshold amount

$160,000

$160,000

Married filing jointly--completed phaseout amount after

$180,000

$180,000

 

MAGI phaseout range for Lifetime Learning credit

2021

2022

Single--phaseout threshold amount

$80,000

$80,000

Single--completed phaseout amount after

$90,000

$90,000

Married filing jointly--phaseout threshold amount

$160,000

$160,000

Married filing jointly--completed phaseout amount after

$180,000

$180,000

 

Coverdell Education Savings Accounts

Coverdell ESAs

2021

2022

Annual contribution limit

$2,000

$2,000

 

MAGI phaseout range for Coverdell education savings accounts

2021

2022

Single--phaseout threshold amount

$95,000

$95,000

Single--completed phaseout amount after

$110,000

$110,000

Married filing jointly--phaseout threshold amount

$190,000

$190,000

Married filing jointly--completed phaseout threshold amount

$220,000

$220,000

  

Deduction for Qualified Higher Education Expenses

Higher education expenses

2021

2022

Maximum deduction

N/A

N/A

 

MAGI maximum for full

$4,000 deduction

2021

2022

Single

N/A

N/A

Married filing jointly

N/A

N/A

 

MAGI range for $2,000 deduction

2021

2022

Single--MAGI greater than this amount:

N/A

N/A

Single--MAGI does not exceed this amount:

N/A

N/A

Married filing jointly--MAGI greater than this amount:

N/A

N/A

Married filing jointly--MAGI does not exceed this amount:

N/A

N/A

 

Deduction for Student Loan Interest

Education loan interest deduction

2021

2022

Maximum deduction for interest paid on qualified education loans

$2,500

$2,500

 

MAGI phaseout range

2021

2022

Single--phaseout threshold amount

$70,000

$70,000

Single--completed phaseout amount after

$85,000

$85,000

Married filing jointly--phaseout threshold amount

$140,000

$145,000

Married filing jointly--completed phaseout amount after

$170,000

$175,000

 

Gift Tax Exclusion

Gift tax

2021

2022

Annual gift tax

exclusion--single individual

$15,000

$16,000

Annual gift tax exclusion--joint gift

$30,000

$32,000

Lump-sum gift to 529 plan--single individual

$75,000

$80,000

Lump-sum gift to 529 plan--joint gift

$150,000

$160,000

 

Kiddie Tax

Kiddie tax

2021

2022

Children's unearned income over this amount generally taxed at parents' tax rates

$2,200

$2,300

 

U.S. Savings Bonds Interest Exclusion for College Expenses

Joint returns

2021

2022

Phaseout threshold for joint returns

$124,800

$128,650

Completed phaseout amount after

$154,800

$158,650

 

Other returns

2021

2022

Phaseout threshold for other returns

$83,200

$85,800

Completed phaseout amount after

$98,200

$100,800

  

PROTECTION PLANNING

Eligible Long-Term Care Premium Deduction Limits

LTC premium deduction limits

2021

2022

Age 40 or under

$450

$450

Age 41-50

$850

$850

Age 51-60

$1,690

$1,690

Age 61-70

$4,520

$4,510

Over age 70

$5,640

$5,640

 

Per Diem Limit

LTC periodic payments

2021

2022

Periodic payments for qualified long-term care insurance/certain life insurance

$400

$390

 

Archer Medical Savings Accounts

High deductible health plan--self-only coverage

2021

2022

Annual deductible--minimum

$2,400

$2,450

Annual deductible--maximum

$3,600

$3,700

Annual out-of-pocket expenses required to be paid (other than for premiums) can't exceed

$4,800

$4,950

 

High deductible health plan--family coverage

2021

2022

Annual deductible--minimum

$4,800

$4,950

Annual deductible--maximum

$7,150

$7,400

Annual out-of-pocket expenses required to be paid (other than for premiums) can't exceed

$8,750

$9,050

 

Flexible Spending Account (FSA) for Healthcare

Health care FSAs

2021

2022

Maximum salary reduction contribution

$2,750

$2,850

 

Health Savings Accounts (HSAs)

Annual contribution limit

2021

2022

Self-only coverage

$3,600

$3,650

Family coverage

$7,200

$7,300

 

High deductible health plan--self-only coverage

2021

2022

Annual deductible--minimum

$1,400

$1,400

Annual out-of-pocket expenses required to be paid (other than for premiums) can't exceed

$7,000

$7,050

 

High deductible health plan--family coverage

2021

2022

Annual deductible--minimum

$2,800

$2,800

Annual out-of-pocket expenses required to be paid (other than for premiums) can't exceed

$14,000

$14,100

 

Catch-up contributions

2021

2022

Annual catch-up contribution limit for individuals age 55 or older

$1,000

$1,000

 

ESTATE PLANNING

Key indexed figures

2021

2022

Annual gift exclusion:

$15,000

$16,000

Gift and estate tax applicable exclusion amount:

$11,700,000 + DSUEA1

$12,060,000 + DSUEA1

Noncitizen spouse annual gift exclusion:

$159,000

$164,000

Generation-skipping transfer (GST) tax exemption:

$11,700,0002

$12,060,0002

Special use valuation limit (qualified real property in decedent's gross estate):

$1,190,000

$1,230,000

1 Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and later years).

2 The GST tax exemption is not portable.

 

2021 and 2022 Gift and Estate Tax Rate Schedule

Taxable Estate

Tentative Tax Equals

Plus

Of Amount Over

0 - $10,000

$0

18%

$0

$10,000 - $20,000

$1,800

20%

$10,000

$20,000 - $40,000

$3,800

22%

$20,000

$40,000 - $60,000

$8,200

24%

$40,000

$60,000 - $80,000

$13,000

26%

$60,000

$80,000 - $100,000

$18,200

28%

$80,000

$100,000 - $150,000

$23,800

30%

$100,000

$150,000 - $250,000

$38,800

32%

$150,000

$250,000 - $500,000

$70,800

34%

$250,000

$500,000 - $750,000

$155,800

37%

$500,000

$750,000 - $1,000,000

$248,300

39%

$750,000

$1,000,000 +

$345,800

40%

$1,000,000

 

 

 

 

Credit shelter amount $11,700,000 in 2021 and

$12,060,000 in 2022

Unified credit amount $4,625,800 in 2021 and $4,769,800 in 2022

 

GOVERNMENT BENEFITS

Social Security

Social Security

Cost-of-living adjustment (COLA)

2021

2022

For Social Security and Supplemental Security Income (SSI) beneficiaries

1.30%

5.90%

 

Tax rate--employee

2021

2022

FICA tax -- Employee

7.65%

7.65%

Social Security (OASDI) portion of tax

6.20%

6.20%

Medicare (HI) portion of tax

1.45%1

1.45%1

 

Tax rate--self-employed

2021

2022

Self-Employed

15.30%

15.30%

Social Security (OASDI) portion of tax

12.40%

12.40%

Medicare (HI) portion of tax

2.90%1

2.90%1

 

1 An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).

 

Maximum taxable earnings

2021

2022

Social Security (OASDI only)

$142,800

$147,000

Medicare (HI only)

No limit

No limit

 

Quarter of coverage

2021

2022

Earnings required

$1,470

$1,510

 

Retirement earnings test--exempt amounts--Under full retirement age--Benefits reduced by $1 for each $2 earned above:

2021

2022

Yearly figure

$18,960

$19,560

Monthly figure

$1,580

$1,630

 

Retirement earnings test--exempt amounts--Year individual reaches full retirement age--Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age):

2021

2022

Yearly figure

$50,520

$51,960

Monthly figure

$4,210

$4,330

 

Retirement earnings test--exempt amounts--Beginning the month individual attains full retirement age

2021

2022

 

No limit on earnings

No limit on earnings

 

Social Security disability thresholds

2021

2022

Substantial gainful activity (SGA) for the sighted (monthly figure)

$1,310

$1,350

Substantial gainful activity for the blind (monthly figure)

$2,190

$2,260

Trial work period (TWP) (monthly figure)

$940

$970

 

SSI federal payment standard

2021

2022

Individual (monthly figure)

$794

$841

Couple (monthly figure)

$1,191

$1,261

 

SSI resource limits

2021

2022

Individual

$2,000

$2,000

Couple

$3,000

$3,000

 

SSI student exclusion limits

2021

2022

Monthly limit

$1,930

$2,040

Annual limit

$7,770

$8,230

 

Maximum Social Security benefit

2021

2022

Worker retiring at full retirement age (monthly figure)

$3,148

$3,345

 

Formula for Monthly Primary Insurance Amount (PIA)

2021

2022

(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)

X=$996 Y=$6,002

X=$1,024 Y=$6,172

 

Medicare

Medicare monthly premium amounts--Part A (hospital insurance) premium

2021

2022

Individuals with 40 or more quarters of Medicare-covered employment

$0

$0

Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance

Up to $471

Up to $499

 

Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file an individual income tax return with income that is:

2021

2022

Less than or equal to $91,000

$148.502

$170.102

$91,001 - $114,000

$207.90

$238.10

$114,001 - $142,000

$297.00

$340.20

$142,001 - $170,000

$386.10

$442.30

$170,001 - $499,999

$475.20

$544.30

$500,000 and above

$504.90

$578.30

 

Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file a joint income tax return with income that is:

2021

2022

Less than or equal to $182,000

$148.502

$170.102

$182,001 - $228,000

$207.90

$238.10

$228,001 - $284,000

$297.00

$340.20

$284,001 - $340,000

$386.10

$442.30

$340,001 - $749,999

$475.20

$544.30

$750,000 and above

$504.90

$578.30

 

Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is:

2021

2022

Less than or equal to $91,000

$148.502

$170.102

$91,001 - $408,999

$475.20

$544.30

$409,000 and above

$504.90

$578.30

 2 This is the standard Part B premium amount. However, some people who get Social Security benefits will pay more or less than this amount.

 

Original Medicare plan deductible and coinsurance amounts--Part A (hospital insurance)

2021

2022

Deductible per benefit period

$1,484

$1,556

Coinsurance per day for 61st to 90th day of each benefit period

$371

$389

Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days--nonrenewable)

$742

$778

 

Original Medicare plan deductible and coinsurance amounts

2021

2022

Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period

$185.50

$194.50

 

Original Medicare plan deductible and coinsurance amounts--Part B (medical insurance) annual deductible

2021

2022

Individual pays 20 percent of the Medicare-approved amount for services after deductible is met

$203

$233

  

Medicaid

Income threshold

2021

2022

Monthly income threshold for income-cap states ("300 percent cap limit")

$2,382

$2,523

 

Monthly maintenance needs allowance for at-home spouse

2021

2022

Minimum3

$2,155.00

$2,177.50

Maximum

$3,259.50

$3,435.00

 

Community spousal resource allowance

2021

2022

Minimum

$26,076.00

$27,480.00

Maximum

$130,380.00

$137,400.00

 3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.

 

RETIREMENT PLANNING

 

Employee/Individual Contribution Limits

Elective deferral limits

2021

2022

401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 [Includes Roth 401(k) and Roth 403(b) contributions]

Lesser of $19,500 or 100% of participant's compensation

Lesser of $20,500 or 100% of participant's compensation

SIMPLE 401(k) plans and SIMPLE IRA plans1

Lesser of $13,500 or 100% of participant's compensation

Lesser of $14,000 or 100% of participant's compensation

1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).

 

IRA contribution limits

2021

2022

Traditional IRAs

Lesser of $6,000 or 100% of earned income

Lesser of $6,000 or 100% of earned income

Roth IRAs

Lesser of $6,000 or 100% of earned income

Lesser of $6,000 or 100% of earned income

 

Additional "catch-up" limits (individuals age 50 or older)

2021

2022

401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2

$6,500

$6,500

SIMPLE 401(k) plans and SIMPLE IRA plans

$3,000

$3,000

IRAs (traditional and Roth)

$1,000

$1,000

2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

 

Employer Contribution/Benefit3 Limits

Defined benefit plan limits

2021

2022

Annual contribution limit per participant

No predetermined limit. Contributions based on amount needed to fund promised benefits

No predetermined limit. Contributions based on amount needed to fund promised benefits.

Annual benefit limit per participant

Lesser of $230,000 or 100% of average compensation for highest three consecutive years

Lesser of $245,000 or 100% of average compensation for highest three consecutive years

 

Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans]

2021

2022

Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth

contributions; and forfeitures) (does not apply to SIMPLE IRA plans)

Lesser of $58,000 or 100% (25% for SEP) of participant's compensation

Lesser of $61,000 or 100% (25% for SEP) of participant's compensation

Maximum tax-deductible employer contribution [not applicable to 403(b) plans]

25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans

25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans

 

3 For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.

 

Compensation Limits/Thresholds

 

Retirement plan compensation limits

2021

2022

Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs)

$290,000

$305,000

Compensation threshold used to determine a highly compensated employee

$130,000 (when 2021 is the look-back year)

$135,000 (when 2022 is the look-back year)

Compensation threshold used to determine a key employee in a top-heavy plan

$1 for more-than-5% owners,

$185,000 for officers, $150,000 for more-than-1% owners

"$1 for more-than-5% owners

$200,000 for officers $150,000 for more-than-1% owners"

Compensation threshold used to determine a qualifying employee under a SIMPLE plan

$5,000

$5,000

Compensation threshold used to determine a qualifying employee under a SEP plan

$650

$650

 

Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as:

2021

2022

Single

$66,000 - $76,000

$68,000 - $78,000

Married filing jointly

$105,000 - $125,000

$109,000 - $129,000

Married filing separately

$0 - $10,000

$0 - $10,000

 

Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a:

2021

2022

Joint return with a spouse who is covered by an

employer-sponsored retirement plan

$198,000 - $208,000

$204,000 - $214,000

 

Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as:

2021

2022

Single

$125,000 - $140,000

$129,000 - $144,000

Married filing jointly

$198,000 - $208,000

$204,000 - $214,000

Married filing separately

$0 - $10,000

$0 - $10,000

 

INVESTMENT PLANNING

 

Maximum Tax on Long-Term Capital Gains and Qualified Dividends

0% rate applies (taxable income thresholds)

2021

2022

Single

Up to $40,400

Up to $41,675

Married filing jointly

Up to $80,800

Up to $83,350

Married filing separately

Up to $40,400

Up to $41,675

Head of household

Up to $54,100

Up to $55,800

 

15% rate applies (taxable income thresholds)

2021

2022

Single

$40,400 to $445,850

$41,675 to $459,750

Married filing jointly

$80,800 to $501,600

$83,350 to $517,200

Married filing separately

$40,400 to $250,800

$41,675 to $258,600

Head of household

$54,100 to $473,750

$55,800 to $488,500

 

20% rate applies (taxable income thresholds)

2021

2022

Single

Over $445,850

Over $459,750

Married filing jointly

Over $501,600

Over $517,200

Married filing separately

Over $250,800

Over $258,600

Head of household

Over $473,750

Over $488,500

 

Unearned Income Medicare Contribution Tax ("Net Investment Income Tax")

Amount of tax

2021

2022

Tax percentage

3.80%

3.80%

 

Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:

2021

2022

Individuals

$200,000

$200,000

Married filing jointly

$250,000

$250,000

Married filing separately

$125,000

$125,000

.

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Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This article was prepared by Broadridge.

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