Michigan Tax News: How Much Will You Owe With the New IRS Tax Brackets?
The IRS has released its new federal income tax brackets for 2022, and that means you could owe something different on your taxes. It’s hard for me to believe tax season is around the corner, but right after the holidays is when I usually start rounding up my tax information for the coming year, so it’s coming.
So, why the new brackets? Income limits for each bracket have been changed to adjust for inflation, but the seven tax rates are unchanged, reports CNBC. The 2022 tax brackets are for taxes that will be filed in 2023, according to CNBC. View the current, 2021 brackets, which will be the ones you use for filing you taxes next year, via the IRS website.
Below are the new brackets for 2022 for both individuals and married couples filing a return jointly, via the IRS:
35% for incomes over $215,950 ($431,900 for married couples filing jointly)
32% for incomes over $170,050 ($340,100 for married couples filing jointly)
24% for incomes over $89,075 ($178,150 for married couples filing jointly)
22% for incomes over $41,775 ($83,550 for married couples filing jointly)
12% for incomes over $10,275 ($20,550 for married couples filing jointly)
10% for incomes of $10,275 or less ($20,550 for married couples filing jointly)
The IRS also released higher standard deductions for 2022, which can be viewed below:
$25,900 for married couples filing jointly
$12,950 for individuals and married people filing separately
$19,400 for heads of households for tax year 2022
There is no limit on itemized deductions, according to this IRS.