Long-term capital gains are taxed using different brackets and rates than ordinary income. 2022 Capital Gains Tax Rates & Brackets (Long-term Capital Gains) The refundable portion of the Child Tax Credit is adjusted for inflation and will increase from $1,400 to $1,5. The maximum Child Tax Credit is $2,000 per qualifying child and is not adjusted for inflation. 2022 Earned Income Tax CreditВ (EITC) Parameters Filing Status The maximum credit is $3,733 for one child, $6,164 for two children, and $6,935 for three or more children. The maximum Earned Income Tax Credit (EITC) in 2022 for single and joint filers is $560 if the filer has no children (Table 5). 2022 Alternative Minimum Tax (AMT) Exemption Phaseout Thresholds Filing Status In 2022, the 28 percent AMT rate applies to excess AMTI of $206,100 for all taxpayers ($103,050 for married couples filing separate returns).ДЄMT exemptions phase out at 25 cents per dollar earned once AMTI reaches $539,900 for single filers and $1,079,800 for married taxpayers filing jointly (Table 4). 2022 Alternative Minimum TaxВ (AMT) Exemptions Filing Status The AMT exemption amount for 2022 is $75,900 for singles and $118,100 for married couples filing jointly (Table 3). The AMT is levied at two rates: 26 percent and 28 percent. However, this exemption phases out for high-income taxpayers. To prevent low- and middle-income taxpayers from being subject to the AMT, taxpayers are allowed to exempt a significant amount of their income from AMTI. The AMT uses an alternative definition of taxable income called Alternative Minimum Taxable Income (AMTI). The taxpayer then needs to pay the higher of the two. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The Alternative Minimum Tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax.

The personal exemption for 2022 remains at $0 (eliminating the personal exemption was part of the Tax Cuts and Jobs Act of 2017 (TCJA). The standard deduction will increase by $400 for single filers and by $800 for joint filers (Table 2). The top marginal income tax rate of 37 percent will hit taxpayers with taxable incomeВ above $539,900 for single filers and above $647,850 for married couples filing jointly.Дў022 Tax Brackets for Single Filers, Married Couples Filing Jointly, and Heads of Households 2022 Tax RateДЇor Married Individuals Filing Joint ReturnsДў022 Standard Deduction and Personal Exemption There are seven federal income tax rates in 2022: 10В percent, 12 percent, 22В percent, 24В percent, 32В percent, 35В percent, and 37В percent. In 2022, the income limits for all tax brackets and all filers will be adjusted for inflation and will be as follows (Table 1).

As Inflation Rises, So Will Tax Bills in Many StatesДў022 Federal Income Tax Brackets and Rates.' Election for Married Couples Unincorporated Businesses.' Accessed April 12, 2021. ' Pay As You Go, So You WonвЂ™t Owe: A Guide to Withholding, Estimated Taxes, and Ways to Avoid the Estimated Tax Penalty.' Accessed April 12, 2021.

' Estimated Taxes.' Accessed April 12, 2021. ' Extension of Time to File Your Taxes.' Accessed April 12, 2021. ' Victims of Texas Winter Storms Get Deadline Extensions and Other Tax Relief.' Accessed April 12, 2021. ' Partner's Instructions for Schedule K-1 (Form 1065),'. ' Tax Cuts and Jobs Act: A Comparison for Businesses.' Accessed April 12, 2021.

' Modernized e-file (MeF) for Partnerships.' Accessed April 12, 2021. ' Tax Day for Individuals Extended to May 17: Treasury, IRS Extend Filing and Payment Deadline.' Accessed April 12, 2021. ' Tax Relief in Disaster Situations,' Select '2021.' Accessed April 12, 2021.

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