High Inflation Leads To Bigger Increases In 2022 Tax Code Amounts Than In Recent Years, Says Bloomberg Tax & Accounting Projects |

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.

Bloomberg Tax & Accounting’s 2022 Projected US Tax Rates report enables taxpayers and advisers to begin 2022 tax planning.

From 2021 to 2022, most inflation-adjusted amounts in the tax code, including dollar threshold amounts 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

Bloomberg Tax & Accounting provides practitioner-driven research and technology solutions that deliver timely, strategic information to enable smarter decisions. From our unparalleled tax management portfolios to technology designed to streamline the most complex planning and compliance scenarios, we deliver essential information and analysis, practical insights and software that help tax and accounting professionals around the world to mitigate risk and maximize business results. For more information visit pro.bloombergtax.com/.

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SOURCE Bloomberg Tax and Accounting


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