![]() There are five categories of filers and conditions apply to the one you should use to file your taxes. Your filing status could save you extra money Married couples filing jointly & surviving spouses Single filers & Married couples filing separately However, the total can’t exceed the basic standard deduction for your filing status. co3Uhsp0Js- Raymond James March 7, 2022Īlso, the standard deduction will increase in 2022 by $400 to $12,950 for single filer or married but filing separately, by $600 to $19,400 for head of households and $800 to $25,900 for married taxpayers filing jointly.Īn additional standard deduction of $1,400 will apply to those who are either 65 and older or blind, and the amount doubles if both apply to a taxpayer in 2022.ĭependents that can be claimed on another person’s tax return for the 2022 fiscal year are limited to a standard deduction of either $1,150 or your earned income plus $400, whichever is greater. Here’s a look at two of them in preparation for #TaxDay. Not only can an extra dollar push you into the next highest tax bracket, but it can also affect your exposure to certain surtaxes. So, for example instead of 10% being applied to the first $9,950 of income, it will now be applied to the first $10,275 for a taxpayer filing individually. The annual adjustment is designed to avoid “bracket creep”, when people are pushed into a higher income bracket or inflation reduces the value of other deductions or credits. This is based on the Chained Consumer Price Index created by the Bureau of Labor Statistics through continuously tracking the changing price of a basket of goods and consumer purchasing behavior in response to that change. However, the income thresholds for tax brackets are adjusted to reflect inflation or the cost of living. The seven brackets remain the same 10%, 12%, 22%, 24%, 32%, 35% and 37% which were set after the 2017 Tax Cuts and Jobs Act.
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