2022 Tax Changes

Child Tax Credit

The child tax credit is going back to its pre-2021 form. That means the 2022 credit
amount drops back down to $2,000 per child. Children who are 17 years old
don’t qualify for the credit this year, because the former age limit (16 years old)
returns.
For some lower-income taxpayers, the 2022 credit is only partially refundable (up
to $1,500 per qualifying child), and they must have earned income of at least $2,500
to take advantage of the credit. And there will be no monthly advance payments of
the credit in 2022.
Research Link : https://www.irs.gov/pub/taxpros/fs-2022-28.pdf

Child and Dependent Care Tax Credit

For 2022, the child and dependent care credit is non-refundable. The maximum
credit percentage drops from 50% to 35%. For 2022, the credit is only allowed for
up to $3,000 in expenses for one child/dependent and $6,000 for more than one.
When the 35% maximum credit percentage is applied, that puts the top credit for the
2022 tax year at $1,050 (35% of $3,000) if you have just one child/dependent in your
family and $2,100 (35% of $6,000) if you have more.
In addition, the full child and dependent care credit will only be allowed for families
making less than $15,000 a year in 2022.

Earned Income Tax Credit

The minimum age for a childless worker to claim the EITC jumps back up to 25 for
2022. The maximum age limit (65 years of old) is also back for 2022. The
maximum credit available for childless workers also drops from $1,502 to $560 for
the 2022 tax year.
In addition, the rule allowing you to use your 2019 earned income to calculate
your EITC if it boosted your credit amount no longer applies.
There several inflation-based adjustments that modify the EITC for 2022.
The maximum credit amount is increased from $3,618 to $3,733 for workers
with one child, from $5,980 to $6,164 for workers with two children, and from
$6,728 to $6,935 for workers with three or more children. The earned income
required to claim the maximum EITC is also adjusted annually for inflation. For 2022,
it’s $10,980 if you have one child ($10,640 for 2021), $15,410 if you have two or
more children ($14,950 for 2021), and $7,320 if you have no children ($7,100 for
2021).
The EITC phase-out ranges are adjusted each year to account for inflation. For
2022, the credit starts to phase out for joint filers with children if the greater of their
adjusted gross income (AGI) or earned income exceeds $26,260 ($25,470 for
2021). It’s completely phased out for those taxpayers if their AGI or earned income is
at least $49,622 if they have one child ($48,108 for 2021), $55,529 if they have two
2022 Tax Updates
children ($53,865 for 2021), or $59,187 if they have three or more children ($57,414
for 2021).
For other taxpayers with children, the 2022 phase-out ranges are $20,130 to
$43,492 for people with one child ($19,520 to $42,158 for 2021), $20,130 to $49,399
for people with two children ($19,520 to $47,915 for 2021), and $20,130 to $53,057
for people with more than two children ($19,520 to $51,464 for 2021).

If you don’t have children, the 2022 phase-out range is $15,290 to $22,610 for joint
filers ($14,820 to $21,920 for 2021) and $9,160 to $16,480 for other people ($8,880
to $15,980 for 2021).

Finally, the limit on a worker’s investment income is increased to $10,300.

Research Link : https://www.irs.gov/newsroom/changes-to-the-earned-income-tax-credit-for-

the-2022-filing-season

Recovery Rebate Credit

There are no stimulus check payments in 2022, so there will be no Recovery

Rebate Credit for 2022.

Premium Tax Credit

American Rescue Plan Act (ARPA), which was signed into law in March 2021,
enhanced the credit for 2021 and 2022 to lower premiums for people who buy
coverage on their own. Under the ARPA, you were considered to have met the
premium tax credit’s household income requirements for the 2021 tax year if you (or
your spouse if you filed a joint return) received, or were approved to receive,
unemployment compensation for any week in 2021. However, if you receive
unemployment benefits in 2022, you must satisfy all the normal eligibility
requirements. The Inflation Reduction Act extended most of the premium tax credit
enhancements through 2025. Unfortunately, though, the relaxed eligibility
requirements for people who received unemployment compensation in 2021
was not extended to 2022 or beyond.

2022 Tax Updates

Tax Brackets

Although the tax rates didn’t change, the income tax brackets for 2022 are
slightly wider than for 2021.

Research Link : https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-

for-tax-year-2022

Long-Term Capital Gains Tax Rates

In 2022, the 0% rate applies for individual taxpayers with taxable income up to
$41,675 on single returns ($40,400 for 2021),
$55,800 for head-of-household filers ($54,100 for 2021) and
$83,350 for joint returns ($80,800 for 2021).

The 20% rate for 2022

starts at $459,751 for singles ($445,851 for 2021),
$488,501 for heads of household ($473,751 for 2021) and
$517,201 for couples filing jointly ($501,601 for 2021).

The 15% rate is for filers with taxable incomes between the 0% and 20% break
points.

The 3.8% surtax on net investment income stays the same for 2022.

2022 Tax Updates

Standard Deduction

Married couples get $25,900, plus $1,400 for each spouse age 65 or older.
Singles can claim a $12,950 standard deduction.
Head-of-household filers get $19,400 for their standard deduction, plus an
additional $1,750 once they reach age 65.
Blind people can tack on an extra $1,400 to their standard deduction ($1,350 for
2021).
For 2022, as in 2021, 2020, 2019 and 2018, there is no limitation on itemized
deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.

Research Link :https://www.irs.gov/newsroom/year-round-tax-planning-all-taxpayers-should-

understand-eligibility-for-credits-and-deductions

https://www.irs.gov/taxtopics/tc502

1099-K Forms

**DELAYED UNTIL 2023 TAX SEASON**

Third-party payment settlement networks (e.g., PayPal and Venmo) will send you
a Form 1099-K if you are paid over $600 during the year for goods or services,
regardless of the number of transactions.

Research link : https://www.irs.gov/businesses/understanding-your-form-1099-k

Charitable Gift Deductions

Deductions for up to $300 of charitable cash contributions ($600 for married couple
filing a joint return) expired at the end of 2021. The 2020 and 2021 suspension of
the 60%-of-AGI limit on deductions for cash donations by people who itemize also
expired.

Retirement Savings

For people who are still saving for retirement, many dollar limits on retirement plans
and IRAs are higher in 2022.
The maximum contribution limits for 401(k), 403(b) and 457 jumps from $19,500 to
$20,500 for 2022, while people born before 1973 can once again put in $6,500 more
as a catch-up contribution.

The 2022 cap on contributions to simple IRAs is $14,000 , plus an extra $3,000 for
people age 50 and up.

The 2022 contribution limit for traditional IRAs and Roth IRAs stays at $6,000,
plus $1,000 as an additional catch-up contribution for individuals age 50 and up.

2022 Tax Updates

Contributions phase out in 2022 at AGI’s of $204,000 to $214,000 for couples and
$129,000 to $144,000 for singles.

Deduction phaseouts for traditional IRAs also start at higher levels in 2022, from
AGIs of $109,000 to $129,000 for couples and $68,000 to $78,000 for single filers.
If only one spouse is covered by a plan, the phaseout zone for deducting a
contribution for the uncovered spouse starts at $204,000 of AGI and ends at
$214,000.

More lower-income people may be able to claim the “saver’s credit” in 2022, too.
This tax break can be worth up to $1,000 ($2,000 for joint filers), but you must
contribute to a retirement account and your adjusted gross income (AGI) must be
below a certain threshold to qualify.
The income thresholds are $34,000 of adjusted gross income (AGI) for single filers
and married people filing a separate return, $68,000 for married couples filing jointly,
and $51,000 for head-of-household filers.

Research link :https://www.irs.gov/newsroom/irs-announces-changes-to-retirement-plans-for-2022

Adoption of a Child

For 2022, the adoption credit can be taken on up to $14,890 of qualified expenses.
The full credit is available for a special-needs adoption, even if it costs less. The
exclusion for company-paid adoption aid was also increased from $14,440 to
$14,890.
Research link :https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

Student Loan Interest Deduction

If you’re filing anything other than a joint return, the phase-out range did not
change for the 2022 tax year.
The credit amount still starts dropping if your modified AGI is over $70,000 and is
reduced to zero once your modified AGI hits $85,000.
However, for married couples filing a joint return, the phase-out range is adjusted
for 2022. It kicks in at $145,000 ($140,000 for 2021), while the credit is fully phased
out if modified AGI exceeds $175,000 ($170,000 for 2021).

Teacher Expenses
Teachers and other educators who use their own money to buy books,
supplies, COVID-19 protective items, and other materials used in the classroom can
deduct up to $300 of these out-of-pocket expenses. The maximum deduction for
2022 jumps to $600 for a married couple filing a joint return if both spouses are
eligible educators. Homeschooling parents can’t take the deduction.
Research link: https://www.irs.gov/newsroom/new-school-year-reminder-to-educators-maximum-
educator-expense-deduction-rises-to-300-in-2022

2022 Tax Updates

Kiddie Tax

The first $1,150 of a child’s unearned income is tax-free if the child is 18 years old or
younger, or a full-time student under 24.
The next $1,150 is taxed at the child’s rate. Any excess over $2,300 is taxed at the
parent’s rate.
Research link : https://www.irs.gov/taxtopics/tc553

Residential Clean Energy Credit

The credit is increased to 30%. It eventually drops to 26% for 2033 and 22% for
2034, before the credit expires in 2035. In addition, it doesn’t apply to biomass
furnaces and water heaters anymore.

Clean Vehicle Credit

This requirement is effective for vehicles sold after August 16, 2022. Therefore, if
you purchase an electric vehicle between August 17 and the end of the year, you
won’t qualify for the existing credit for the purchase of a new electric vehicle if
it wasn’t assembled in North America.
To help determine if a vehicle satisfies this new requirement, the U.S. Department of
Energy has a general list of vehicles with final assembly in North America on it.

Research Link : https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit

Under the new law, in order for an electric vehicle to qualify for the credit, a certain
percentage of the critical minerals in the vehicle’s battery must be (1) extracted
or processed in the U.S. or a country that has a free trade agreement with the U.S.,
or (2) recycled in North America.
In addition, a certain percentage of the vehicle’s battery components must be
manufactured or assembled in North America. These requirements don’t take
effect until the Treasury Department issues proposed guidance about them. The
guidance must be issued by December 31, 2022.
If you purchased a new electric vehicle before August 16, 2022, but you don’t
actually take possession of the vehicle until August 16 or later, you can still claim
the credit based on the old rules in place before August 16.

Research Link : https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-

section-30d

2022 Tax Updates

Bonds Used for Education

The exclusion starts phasing out above $128,650 of modified AGI for couples and
$85,800 for others .
It ends at modified AGI of $158,650 and $100,800.
The savings bonds must be used to help pay for tuition and fees for college,
graduate school or vocational school for the taxpayer, spouse or a dependent.

Parking and Transportation Benefits

The 2022 cap on employer-provided tax-free parking goes up from $270 to $280
per month. The 2022 exclusion for mass transit passes and commuter vans is also
$280.

Research Link :https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

Americans Working Abroad

U.S. taxpayers working abroad have a larger foreign earned income exclusion in
2022. It jumped from $108,700 for 2021 to $112,000 for 2022. The standard ceiling
on the foreign housing exclusion is also increased from $15,218 to $15,680 for
2022.

Research Link : https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-

exclusion

Payroll Taxes

The Social Security annual wage base is $147,000 for 2022.

The Social Security tax rate on employers and employees stays at 6.2%.
Both workers and employers continue to pay the 1.45% Medicare tax on all
compensation in 2022, with no cap.
Workers also pay the 0.9% Medicare surtax on 2022 wages and self-employment
income over $200,000 for singles and $250,000 for couples.
The surtax doesn’t effect employers. The nanny tax threshold went up to $2,400
for 2022.

Research link :https://www.irs.gov/taxtopics/tc751

2022 Tax Updates

Standard Mileage Rates

From January 1 to June 30, the 2022 standard mileage rate for business driving is
58.5¢ per mile.
The mileage allowance for medical travel and military moves for the same time
span is 18¢ per mile.

From July 1 to December 31, the 2022 mileage rate for use of an automobile for
business purposes rises to 62.5¢ per mile. The standard rate for medical-related
driving and military moving expenses jumps to 22¢ per mile for the second
half of 2022.

The standard mileage rate for the use of an automobile for charitable purposes
didn’t change, it stayed at 14¢ a mile due to being fixed by law.

Research Link :https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022

Per Diem Rate Changes Starting October 1, 2022

The annual update includes the per diem rate under the high-low substantiation
method for travel within the continental United States, which for non-high-cost
localities will be $204.
The rate for travel to high-cost localities within the US, which are listed in the notice,
is $297.
Those current rates for the period Oct. 1, 2021, to Sept. 30, 2022 are, respectively,
$202 and $296.
The portion of the rates treated as paid for meals is $74 for high-cost US
localities and $64 for all other US localities, which has not changed.

The notice also revises the list of high-cost localities for the upcoming new annual
period (Oct. 1, 2022, to Sept. 30, 2023) for which the new rates are in effect. High-
cost localities have a federal per-diem rate of $250 or more.

Notice 2022-44 also provides the special rates for taxpayers in the transportation
industry. The meals and incidental expenses rates are $69 for any locality of
travel within the US and $74 for localities of travel outside the US, both the
same with no changes.
The incidental-expenses only rate remains $5 per day as currently, for travel both
in and outside the continental United States.

Research Link: https://www.irs.gov/pub/irs-drop/n-22-44.pdf

2022 Tax Updates

 Long-Term Care Insurance Premiums

Taxpayers who are age 61 to 70 can deduct up to $4,510 for 2022. The 2022
deduction limits for all age groups are the same as the 2021 amounts.
 40 years old or less = $450
 41 to 50 years old = $850
 51 to 60 years old = $1,690
 61 to 70 years old = $4,510
 71 years of age or older = $5,640

For most taxpayers, long-term care premiums are medical expenses deductible
only by itemizers on Schedule A.

Health Savings Accounts (HSAs)

The annual cap on deductible contributions to health savings accounts (HSAs) rose
in 2022 from $3,600 to $3,650 for self-only coverage and from $7,200 to $7,300
for family coverage. People born before 1968 can put in $1,000 more.
Qualifying insurance policies must limit out-of-pocket costs in 2022 to $14,100 for
family health plans and $7,050 for people with individual coverage. Minimum policy
deductibles remain at $2,800 for families and $1,400 for individuals.

Research Link :https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

Flexible Spending Accounts (FSAs)

The limit on employee contributions to a healthcare flexible spending account is

$2,850. If the employer’s plan allows the carryover of unused amounts, the
maximum carryover amount for 2022 is $570. The normal limit of $5,000-per-
year on tax-free contributions applies once again.

Research link : https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

Alternative Minimum Tax (AMT)

Increased from $114,600 to $118,100 for couples and from $73,600 to $75,900 for
single filers and heads of household. The phaseout zones for the exemptions
start at higher income levels are $1,079,800 for couples and $539,900 for singles
and household heads.

Research Link : https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

2022 Tax Updates

Self-Employed Taxpayers

Self-employed people (along with owners of LLCs, S corporations and other pass-
through entities) can deduct 20% of their qualified business income, subject to
limitations for individuals with taxable incomes in excess of $340,100 for joint
filers and $170,050 for others.
Tax credits that were allowed for self-employed people who couldn’t work for a
reason that would have entitled them to pandemic-related sick or family leave if they
were an employee have expired and aren’t available for the 2022 tax year.

Research Link : https://www.irs.gov/newsroom/for-national-small-business-week-plan-now-to-take-

advantage-of-tax-benefits-for-2022-enhanced-deduction-for-business-meals-home-office-deduction-
and-more

Estate & Gift Taxes

The lifetime estate and gift tax exemption for 2022 jumped from $11.7 million to
$12.06 million — $24.12 million for couples after the death of the first-to-die spouse.
In addition, the deadline for electing portability is pushed back from two years
to five years for smaller estates that aren’t required to file Form 706 because
their assets don’t exceed the exemption amount.
For the estate of a person dying this year, up to $1.23 million of farm or business real
estate can receive discount valuation, letting the estate value the realty at its current
use instead of fair market value.
If one or more closely held businesses make up greater than 35% of a 2022 estate,
as much as $656,000 of tax can be deferred and the IRS will charge only 2%
interest.
The annual gift tax exclusion for 2022 rises from $15,000 to $16,000 per donee.
So, you can give up to $16,000 ($32,000 if your spouse agrees) in 2022 without
having to file a gift tax return.

Research Link : https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

2022 Tax Updates

2023 Key Facts and Figures
Federal Tax
SA Name
SA Phone Number

SA Email Address

INCOME TAXES OTHER TAX RATES

2022 2023 Long-Term Capital Gains and Qualified Dividends Tax Rates for
If Taxable Income Is: If Taxable Income Is: Taxpayers with Taxable Income in the Specified Ranges*

But Not Of the But Not Of the 2022 0% 15% 20%

More Amount More Amount MFJ/SS $0 - $83,350 $83,351 - $517,200 over $517,200
Over Than The Tax Is Over Over Than The Tax Is Over MFS $0 - $41,675 $41,676 - $258,600 over $258,600
Married Filing Jointly: Married Filing Jointly: HoH $0 - $55,800 $55,801 - $488,500 over $488,500
$0 $20,550 $0 + 10% $0 $0 $22,000 $0 + 10% $0 Single $0 - $41,675 $41,676 - $459,750 over $459,750
20,550 83,550 2,055.00 + 12% 20,550 22,000 89,450 2,200.00 + 12% 22,000 E&T $0 - $2,800 $2,801 - $13,700 over $13,700
83,550 178,150 9,615.00 + 22% 83,550 89,450 190,750 10,294.00 + 22% 89,450 2023 0% 15% 20%
178,150 340,100 30,427.00 + 24% 178,150 190,750 364,200 32,580.00 + 24% 190,750 MFJ/SS $0 - $89,250 $89,251 - $553,850 over $553,850
340,100 431,900 69,295.00 + 32% 340,100 364,200 462,500 74,208.00 + 32% 364,200 MFS $0 - $44,625 $44,626 - $276,900 over $276,900
431,900 647,850 98,671.00 + 35% 431,900 462,500 693,750 105,664.00 + 35% 462,500 HoH $0 - $59,750 $59,751 - $523,050 over $523,050
647,850 174,253.50 + 37% 647,850 693,750 186,601.50 + 37% 693,750 Single $0 - $44,625 $44,626 - $492,300 over $492,300
Married Filing Separately: Married Filing Separately: E&T $0 - $3,000 $3,001 - $14,650 over $14,650
$0 $10,275 $0 + 10% $0 $0 $11,000 $0 + 10% $0 • Short-term gain taxed at ordinary rates.
10,275 41,775 1,027.50 + 12% 10,275 11,000 44,725 1,100.00 + 12% 11,000 * Additional 3.8% tax imposed on the lesser of the individual’s Net
Investment Income or the excess of the individual’s MAGI over
41,775 89,075 4,807.50 + 22% 41,775 44,725 95,375 5,147.00 + 22% 44,725 certain thresholds ($250,000 for married couples filing jointly or
89,075 170,050 15,213.50 + 24% 89,075 95,375 182,100 16,290.00 + 24% 95,375 surviving spouse, $125,000 for married couples filing separately,
and $200,000 for all other taxpayers).
170,050 215,950 34,647.50 + 32% 170,050 182,100 231,250 37,104.00 + 32% 182,100
215,950 323,925 49,335.50 + 35% 215,950 231,250 346,875 52,832.00 + 35% 231,250
323,925 87,126.75 + 37% 323,925 346,875 93,300.75 + 37% 346,875 Kiddie Tax
• Under age 19 (or certain full-time students under age 24) with
Head of Household: Head of Household:
unearned income consisting solely of interest, dividends and CGD;
$0 $14,650 $0 + 10% $0 $0 $15,700 $0 + 10% $0 and child’s gross income is less than $11,500 in 2022 or $12,500 in
14,650 55,900 1,465.00 + 12% 14,650 15,700 59,850 1,570.00 + 12% 15,700 2023 – use Form 8814 with parent’s return.
• If child files own return – use Form 8615 with child’s return to
55,900 89,050 6,415.00 + 22% 55,900 59,850 95,350 6,868.00 + 22% 59,850 calculate tax at parent’s marginal rate.
89,050 170,050 13,708.00 + 24% 89,050 95,350 182,100 14,678.00 + 24% 95,350
2022 2023
170,050 215,950 33,148.00 + 32% 170,050 182,100 231,250 35,498.00 + 32% 182,100 First $1,150 $1,250 No Tax
215,950 539,900 47,836.00 + 35% 215,950 231,250 578,100 51,226.00 + 35% 231,250
Next $1,150 $1,250 Taxed at child’s marginal rate
539,900 161,218.50 + 37% 539,900 578,100 172,623.50 + 37% 578,100
Single: Single Amount Over $2,300 $2,500 Taxed at parent’s marginal rate

$0 $10,275 $0 + 10% $0 $0 $11,000 $0 + 10% $0

10,275 41,775 1,027.50 + 12% 10,275 11,000 44,725 1,100.00 + 12% 11,000 AMT Rates for Individuals
41,775 89,075 4,807.50 + 22% 41,775 44,725 95,375 5,147.00 + 22% 44,725 AMTI Threshold AMT
89,075 170,050 15,213.50 + 24% 89,075 95,375 182,100 16,290.00 + 24% 95,375 2022 2023 Rate
170,050 215,950 34,647.50 + 32% 170,050 182,100 231,250 37,104.00 + 32% 182,100 $0 - $206,100 $0 - $220,700 26%
Single, MFJ, HoH
215,950 539,900 49,335.50 + 35% 215,950 231,250 578,125 52,832.00 + 35% 231,250 $206,101 or more $220,701 or more 28%

539,900 162,718.00 + 37% 539,900 578,125 174,238.25 + 37% 578,125 $0 - $103,050 $0 - $110,350 26%
MFS
$103,051 or more $110,351 or more 28%
Estates and Trusts: Estates and Trusts
AMT Exemption
$0 $2,750 $0 + 10% $0 $0 $2,900 $0 + 10% $0 2022 2023
2,750 9,850 275.00 + 24% 2,750 2,900 10,550 290.00 + 24% 2,900 Single, HoH $75,900 $81,300
9,850 13,450 1,979.00 + 35% 9,850 10,550 14,450 2,126.00 + 35% 10,550 MFJ, SS $118,100 $126,500
13,450 3,239.00 + 37% 13,450 14,450 3,491.00 + 37% 14,450 MFS $59,050 $63,250

SOCIAL SECURITY
Maximum Compensation Subject to FICA
EDUCATION INCENTIVES OASDI Maximum
2022
$147,000
2023
$160,200
Tuition Deduction – “Above-the-line” deduction for qualified tuition and related expenses repealed for tax years HI Maximum No Limit No Limit
after 2020. • OASDI tax rate – 2022 & 2023: 12.4% self-employed, 6.2% employees
Student Loan Interest Deduction – “Above-the-line” deduction up to $2,500 (2022 and 2023); no time limit on • HI tax rate* – 2022 & 2023: 2.9% self-employed, 1.45% employees
deductibility period; subject to income limitations. * Additional 0.9% tax imposed on employment wages for certain
higher-income taxpayers (income of more than $250,000 for married
Education Credits – American Opportunity Credit is up to $2,500 in 2022 and 2023 per student for first four years couples filing jointly or surviving spouse, $125,000 for married
of higher education expenses paid. Lifetime Learning Credit is 20% of tuition paid up to $2,000 per return for couples filing separately, and $200,000 for all other taxpayers)
2022 and 2023. Both credits are subject to income limitations and cannot be used in conjunction with each other
for the same student. Maximum Amount of Earnings to Still Receive Full Benefits
2022 2023
Section 529 Plans (Qualified Tuition Programs) – Distributions used for qualified higher education expenses
are income tax free. Contributions are potentially subject to gift tax, but are eligible for the per-donee annual Under full retirement age $19,560 $21,240
exclusion ($16,000 for 2022; $17,000 for 2023). Donor can elect to treat up to $80,000 of the contribution in 2022 MAGI Amounts for Benefits to Be Taxable
($85,000 in 2023) as if it had been made ratably over a 5-year period.
50% Taxable 85% Taxable
Coverdell Education Savings Accounts (Education IRAs) – Contribution limit is $2,000 in 2022 and 2023; subject to Married Filing Jointly $32,000 $44,000
income limitations. Single, HOH, MFS Living Apart $25,000 $34,000

CURRENT AS OF NOVEMBER 18, 2022

DEDUCTIONS IRAs
Standard Deduction Contribution Limits - Traditional and Roth
Add’l Age 65 or 2022 2023
Year Annual Older or Blind
Regular $6,000 $6,500
Married Filing Jointly/ 2022 $25,900 $1,400
Surviving Spouse 2023 $27,700 $1,500 Catch-up* $1,000 $1,000
Married Filing 2022 $12,950 $1,400
*Individuals who will be at least age 50 by the end of the year can make catch-up contributions.
Separately 2023 $13,850 $1,500
Head of 2022 $19,400 $1,750 Roth IRAs
Household 2023 $20,800 $1,850
2022 $12,950 $1,750 MAGI Phaseout Ranges for
Single Contributions to Roth IRAs 2022 2023
2023 $13,850 $1,850
Phaseout of Itemized Deductions Does Not Apply in 2022 Married Filing Jointly $204,000 – $214,000 $218,000 – $228,000
or 2023 Single, Head of Household $129,000 – $144,000 $138,000 – $153,000
Code Sec. 179 Expense Allowance Married Filing Separately $0 – $10,000 $0 – $10,000
2022 2023
Traditional IRA Deductibility Rules
Dollar limitation $1,080,000 $1,160,000 Modified AGI
Investment limitation $2,700,000 $2,890,000 Filing Covered by Qualified
Qualified Business Income Deduction Phase-In Thresholds Status Retirement Plan? 2022 2023 Deductibility

Taxable Income Phase-In No Any amount Any amount Full deduction

2022 2023
Single, HoH $68,000 or less $73,000 or less Full deduction
MFJ $340,100 - $440,100 $364,200 - $464,200 Yes $68,001 - $77,999 $73,001 - $82,999 Partial deduction
MFS $170,050 - $220,050 $182,100 - $232,100 $78,000 or more $83,000 or more No deduction

All Others $170,050 - $220,050 $182,100 - $232,100 Neither spouse Any amount Any amount Full deduction

$109,000 or less $116,000 or less Full deduction

Both spouses covered $109,001 - $128,999 $116,001 - $135,999 Partial deduction
$129,000 or more $136,000 or more No deduction
ESTATE & GIFT TAXES Married
Filing One spouse $109,000 or less $116,000 or less Full deduction
2022 2023 Jointly covered: for $109,001 - $128,999 $116,001 - $135,999 Partial deduction
covered spouse $129,000 or more $136,000 or more No deduction
Annual Gift Tax Exclusion $16,000 $17,000
One spouse $204,000 or less $218,000 or less Full deduction
for Noncitizen Spouses $164,000 $175,000
covered: for $204,001 - $213,999 $218,001 - $227,999 Partial deduction
Estate Tax Exclusion $12,060,000 $12,920,000 non-covered spouse $214,000 or more $228,000 or more No deduction
Applicable Credit $4,769,800 $5,113,800
Neither spouse Any amount Any amount Full deduction
Gift Tax Exclusion $12,060,000 $12,920,000 Married Filing
$9,999 or less $9,999 or less Partial deduction
Generation-Skipping Separately,
$12,060,000 $12,920,000 Both spouses covered
Transfer Tax Exemption lived together
$10,000 or more $10,000 or more No deduction
for any part
of the year (if
One spouse $9,999 or less $9,999 or less Partial deduction
spouses lived
covered: for
separately
CREDITS & EXCLUSIONS
covered spouse $10,000 or more $10,000 or more No deduction
throughout
year, treated as One spouse $9,999 or less $9,999 or less Partial deduction
Child Tax Credit Single) covered: for
non-covered spouse $10,000 or more $10,000 or more No deduction
2022 2023
Credit Amount $2,000 $2,000
Refundable Amount $1,500 $1,600
$2,000 credit amount for 2022 and 2023 phases out $50 for QUALIFIED PLANS
every $1,000 AGI over $400,000 (MFJ), $200,000 (all others)
2022 2023
Foreign Income
Maximum elective deferral to retirement plans (e.g., 401(k), 403(b)) $20,500 $22,500
2022 2023
Maximum elective deferral to SIMPLE IRAs $14,000 $15,500
Foreign earned income
$112,000 $120,000 Maximum elective deferral to 457 plans or exempt employers $20,500 $22,500
exclusion
Maximum foreign housing Limit on annual additions to Keogh plans and SEP-IRAs $61,000 $66,000
$15,680 $16,800
exclusion of qualified
($33,600 - $17,920) ($36,000 - $19,200) Limit on annual additions to defined contribution plans $61,000 $66,000
housing expenses
Maximum annual compensation taken into account for contributions $305,000 $330,000

Annual benefit limit under defined benefit plans $245,000 $265,000

INDIVIDUAL ESTIMATED TAXES Threshold amount for definition of highly compensated employee $135,000 $150,000

Individuals can base federal estimated tax payments on: Threshold amount for definition of key employee in top-heavy plans $200,000 $215,000
1) 90% of current tax,
2) 100% of prior year’s tax, or Catch-up Contribution Limits*
3) 110% of prior year’s tax if prior year’s AGI is
401(k), 403(b), SARSEP and 457 plans $6,500 $7,500
> $150,000 (> $75,000 for Married Filing Separately)
• Annualization exception SIMPLE plans $3,000 $3,500
• No penalty if tax less withholding < $1,000 or no tax liability
in preceding tax year * Individuals who will be at least age 50 by the end of the year can make catch-up contributions.

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