ARLINGTON, Virginia., September 14, 2021 / PRNewswire / – Bloomberg Tax & Accounting today released its 2022 Projected US Tax Rates report, which provides a detailed and comprehensive projection of inflation-adjusted amounts in the tax code. The report’s projections are based on changes to the chained Consumer Price Index for All Urban Consumers (C-CPI-U), which were released this morning by the United States Bureau of Labor Statistics. Bloomberg Tax & Accounting projections provide advance notice of the amount of tax savings that will be realized by taxpayers due to increased deduction limits, upward adjustments to tax bracket thresholds and the increase in many other key thresholds. The full report is available at http://onb-tax.com/7BpZ50G9f8x.
From 2021 to 2022, most inflation-adjusted amounts in the tax code, including dollar thresholds for tax rate brackets, are expected to increase by about 3%.
The following provisions have been amended from last year’s report based on recent tax legislation:
- Limitation of ineligible income, for the purposes of the §32 labor income tax credit, increased by $ 2,200 To $ 10,000.
- The §179D deduction limit for energy efficient commercial buildings is now adjusted for inflation.
- The phase-out range of the §25A lifelong learning credit is no longer adjusted for inflation.
“We expect the inflation-adjusted amounts in the tax code to increase by a higher percentage in 2022 than in previous years due to high inflation in the United States,” said Jean McCormick, Vice President, Analysis and Content, Bloomberg Tax & Accounting. “Taxpayers and advisers can use our projections to begin their 2022 tax planning before the IRS releases official inflation-adjusted amounts for 2022 later this year.”
Personal tax rate brackets
Bloomberg Tax & Accounting has forecast 2022 income brackets for each tax rate bracket. The income brackets for the tax brackets for married taxpayers filing jointly and for single taxpayers are shown below. The rate bands for other deposit statuses are included in the full report.
Joint and surviving spouses deposit
|
Income brackets of the tax rate brackets planned for 2022 |
|
10% – $ 0 to $ 20,550 |
|
12% – $ 20,550 to $ 83,550 |
|
22% – $ 83,550 to $ 178,150 |
|
24% – $ 178,150 to $ 340,100 |
|
32% – $ 340,100 to $ 431,900 |
|
35% – $ 431,900 to $ 647,850 |
|
37% – $ 647,850 or more |
Unmarried persons (other than surviving spouses and heads of household)
|
Income brackets of the tax rate brackets planned for 2022 |
|
10% – $ 0 to $ 10,275 |
|
12% – $ 10,275 to $ 41,775 |
|
22% – $ 41,775 to $ 89,075 |
|
24% – $ 89,075 to $ 170,050 |
|
32% – $ 170,050 to $ 215,950 |
|
35% – $ 215,950 to $ 539,900 |
|
37% – $ 539,900 or more |
Standard deduction
Bloomberg Tax & Accounting has forecast the following standard deduction amounts for 2022:
|
Filing status |
Projected 2022 Standard deduction |
|
Joint deposit / surviving spouses |
$ 25,900 |
|
Heads of families |
$ 19,400 |
|
All other taxpayers |
$ 12,950 |
Alternative Minimum Tax (AMT)
The AMT exemption amounts planned for 2022 are shown below.
|
Filing status |
Projected 2022 AMT exemption amount |
|
Joint deposit / surviving spouses |
$ 118,100 |
|
Unmarried persons (other than surviving spouses) |
$ 75,900 |
|
Married Filing separately |
$ 59,050 |
|
Estates and trusts |
$ 26,500 |
About Bloomberg Tax & Accounting
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SOURCE Bloomberg Tax and Accounting
