IRS Announces Adjustments for 2022 in Revenue Procedure 2021-45

The IRS announced in Revenue Procedure 2021-45 its annual inflation adjustments to more than 60 tax provisions, including the tax rate schedules.

Here are the highlights for tax year 2022:

• Marginal tax rates are unchanged, but brackets have been adjusted for inflation.
• Standard deductions have increased by $800 to $25,900 if married filing jointly and by $400 to $12,950 if single. The personal exemption remains at 0.
• Various exemptions and limits were also adjusted, including the exemption for the Alternative Minimum Tax.
• There is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.

For complete details, check out the IRS announcement.