December 6, 2021

2021 and 2022 Inflation/Cost of Living Updates

2021 and 2022 Inflation/Cost of Living Updates Tax & Business

2021 Tax Benefit
STANDARD DEDUCTION
2021
2022
Married-Joint
$25,100
$25,900
Single
$12,550
$12,950
Married-Separate
$12,550
$12,950
Head of Household
$18,800
$19,400
Foreign Earned Income Exclusion
$108,700
$112,000
Maximum Taxable Social Security Earnings Base
$142,800
$147,000

2021 Individual Income Tax Rates
RATE
SINGLE
HEAD OF HOUSEHOLD
MARRIED-JOINT
MARRIED-SEPERATE
10%
$0 – $9,950
$0 – $14,200
$0 – $19,900
$0 – $9,950
12%
$9,951 – $40,525
$14,201 – $54,200
$19,901 – $81,050
$9,951 – $40,525
22%
$40,526 – $86,375
$54,201 – $86,350
$81,051 – $172,750
$40,526 – $86,375
24%
$86,376 – $164,925
$86,351 – $164,900
$172,751 – $329,850
$86,376 – $164,925
32%
$164,926 – $209,425
$164,901 – $209,400
$329,851 – $418,850
$164,926 – $209,425
35%
$209,426 – $523,600
$209,401 – $523,600
$418,851 – $628,300
$209,426 – $314,150
37%
Over $523,600
Over $523,600
Over $628,300
Over $314,150

2022 Individual Income Tax Rates
RATE
SINGLE
HEAD OF HOUSEHOLD
MARRIED-JOINT
MARRIED-SEPERATE
10%
$0 – $10,275
$0 – $14,650
 $0 – $20,550
$0 – $10,275
12%
$10,276 – $41,775
$14,651 – $55,900
$20,551 – $83,550
$10,276 – $41,775
22%
$41,776 – $89,075
$55,901 – $89,050
$83,551 – $178,150
$41,776 – $89,075
24%
$89,076 – $170,050
$89,051 – $170,050
$178,151 – $340,100
$89,076 – $170,050
32%
$170,051 – $215,950
$170,051 – $215,950
$340,101 – $431,900
$170,051 – $215,950
35%
$215,951 – $539,900
$215,951 – $539,900
$431,901 – $647,850
$215,951 – $323,925
37%
Over $523,900
Over $539,900
Over $647,850
Over $323,925

2021 Trust & Estates Income Tax Brackets
OVER
BUT NOT OVER
THE TAX IS
…OF AMOUNT OVER
$0
$2,650
10%
$0
$2,650
$9,550
$265 + 24%
$2,650
$9,550
$13,050
$1,921 + 35%
$9,550
$13,050
 
$3,146 + 37%
$13,050

2022 Trust & Estates Income Tax Brackets
OVER
BUT NOT OVER
THE TAX IS
…OF AMOUNT OVER
$0
$2,750
10%
$0
$2,750
$9,850
$275 + 24%
$2,750
$9,850
$13,450
$1,979 + 35%
$9,850
$13,450
 
$3,146 + 37%
$13,450

2021 Alternative Minimum Tax Exemption
 
2021 EXECPTION
PHASE-OUT THRESHOLD
COMPLETE PHASE-OUT OF EXEMPTION
Married Filing Jointly
$114,600
$1,047,200
$1,505,600
Married Filing Single
$57,300
$523,600
$818,000
Single
$73,600
$523,600
$818,000
Estates and Trust
$25,700
$85,650
$188,450

2022 Alternative Minimum Tax Exemption
 
2022 EXECPTION
PHASE-OUT THRESHOLD
COMPLETE PHASE-OUT OF EXEMPTION
Married Filing Jointly
$118,100
$1,079,800
$1,552,200
Married Filing Single
$59,050
$539,900
$776,100
Single
$75,900
$539,900
$843,500
Estates and Trust
$26,500
    

2021 Taxable Income Threshold for Long-Term Capital Gains Rate
FILING STATUS
0% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
15% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
20% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
Married Filing Jointly
Up To $80,800
$80,801 – $501,600
Over $501,600
Head of Household
Up To $54,100
$54,100 – $473,750
Over $473,750
Single
Up To $40,400
$40,401 – $445,850
Over $445,850
Married Filing Single
Up To $40,400
$40,401 – $250,800
Over $250,800
Trusts & Estates
Up To $2,700
$2,701 – $13,250
Over $13,250

2022 Taxable Income Threshold for Long-Term Capital Gains Rate
FILING STATUS
0% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
15% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
20% RATE FOR LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDENDS
Married Filing Jointly
Up to $83,350
$83,351 – $517,200
Over $517,200
Head of Household
Up to $55,800
 $55,801 – $488,500
Over $488,500
Single
Up to $41,675
$41,676 – $459,750
Over $459,750
Married Filing Single
Up to $41,675
$41,676 – $258,600
Over $258,600
Trusts & Estates
Up to $2,800
$2,801 – $13,700
$13,700

Gift & Estate Tax Exemptions
 
2021
2022
Gift Tax Exemption
$11,700,000
$12,060,000
Estate Tax Exemption
$11,700,000
$12,060,000
GST Tax Exemption
$11,700,000
$12,060,000
Annual Exclusion
$15,000
$16,000
Annual Exclusion (For gifts to spouses who are not U.S. Citizens)
$159,000
$164,000

2021 and 2022 DOllar Limit for Retirement Plans
PLAN TYPES
2021 LIMITS
2022 LIMITS
Defined Contribution Plans
$58,000
$61,000
Defined Benefit Plans
$230,000
$245,000
Defined Contribution Plans – 401(k), 403(B) and 457 and Thrift Plans under Age 50
$19,500
$20,500
Age 50 and Older
$26,000
$27,000
Simple Plans: Under Age 50
$13,500
$14,000
Age 50 and Older
$16,500
$17,000
Qualified Plans – Annual Compensation Limit
$290,000
$305,000
Traditional IRA AGI Phase-Out (MFJ with participant in employer plan)
$105,000
$109,000
Traditional IRA AGI Phase-Out (MFJ with taxpayer not an active participant, spouse in employer plan)
$198,000
$204,000
Traditional IRA AGI Phase-Out (Single/HOH)
$66,000
$68,000
Roth IRA Contributions AGI Phase-Out (Single/HOH)
$125,000
$140,000
Roth IRA Contributions AGI Phase-Out (MFJ)
$198,000
$208,000
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (MFJ)
$66,000
$68,000
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (HOH)
$49,500
$51,000
Income Limit for Saver’s Credit (Retirement Savings Contributions Credit) (Single/MFS)
$33,000
$34,000
OTHER THRESHOLDS
2021 LIMITS
2022 LIMITS
SEP Annual Contribution Limit
$58,000
$61,000
Key Employee in a Top-Heavy Plan
$185,000
$200,000
Highly Compensated Employee
$130,000
$135,000

Health Savings Account
CONTRIBUTION LIMITS 2021
2021
2022
Single/Family 
$3,600/$7,200 
$3,650/$7,300
Age 55 + IRA Catch-up Contribution 
$1,000
$1,000
Age 55 + Catch-up contributions to 401(k), 403(B) and 457 and Thrift Plans 
$6,500
$6,500
Catch-up contributions to SIMPLEs 
$3,000
$3,000

2022 Earned Income Tax Credit (EITC) Parameters
FILING STATUS
  
NO CHILDREN
ONE CHILD
TWO CHILDREN
THREE OR MORE CHILDREN
SINGLE OR HEAD OF HOUSEHOLD
Income at Max Credit 
$7,320
$10,980
$15,410
$15,410
Maximum Credit 
$560
$3,733
$6,164
$6,935
Phaseout Begins 
$9,160
$20,130
$20,130
$20,130
Phaseout Ends (Credit Equals Zero)
$16,480
$43,492
$49,399
$53,057
MARRIED FILING JOINTLY
Income at Max Credit
$7,320
$10,980
$15,410
$15,410
Maximum Credit 
$560
$3,733
$6,164
$6,935
Phaseout Begins 
$15,920
$26,260
$26,260
$26,260
Phaseout Ends (Credit Equals Zero)
$22,610
$49,622
$55,529
$59,187
2021 Year-End Tax Guide

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