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2022 Key Numbers

Table of content

Individual Income Tax Planning

Adoption credit

Adoption credit 2021 2022
Maximum credit $14,440 $14,890
Phaseout threshold amount $216,660 $223,410
Completed phaseout amount after $256,660 $263,410

Alternative Minimum Tax (AMT)

Maximum AMT exemption amount 2021 2022
Married filing jointly or surviving spouse $114,600 $118,100
Single or head of household $73,600 $75,900
Married filing separately $57,300 $59,050

AMT income exemption phaseout threshold 2021 2022
Married filing jointly or surviving spouse $1,047,200 $1,079,800
Single or head of household $523,600 $539,900
Married filing separately $523,600 $539,900

AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount) 2021 2022
All taxpayers except married filing separately $199,900 $206,100
Married filing separately $99,950 $103,050

Charitable deductions

Use of auto 2021 2022
Deductible standard mileage rate $0.14 $0.14

Charitable fundraising “insubstantial benefit” limitation 2021 2022
Low-cost article (re: unrelated business income) $11.30 $11.70

Gifts to donor in return for contribution 2021 2022
Token gift maximum cost1 $11.30 $11.70
Minimum contribution amount1 $56.50 $58.50
2% threshold amount2 $113 $117

1Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum

2Charitable contribution is fully deductible if the benefit received by the donor doesn’t exceed the lesser of the threshold amount or 2% of the amount of the contribution

Child tax credit

Amount of credit 2021 2022
Maximum credit per qualifying child $3,000 ($3,600 for children under age 6) $2,000
Nonrefundable credit for dependents who are not qualifying children $500 $500

Phaseout — credit reduced by $50 for each $1,000 or fraction thereof of MAGI over (but not to be reduced below $2,000) 2021 2022
Married filing jointly or surviving spouse $150,000 N/A
Head of household $112,500 N/A
Single or married filing separately $75,000 N/A

Phaseout — any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over 2021 2022
Married filing jointly $400,000 $400,000
All other filing status $200,000 $200,000

Refundability — up to specified percentage of earned income in excess of specified amount1 2021 2022
Percentage N/A 15%
Amount N/A $2,500
Maximum refundable amount of credit Fully refundable1 $1,500

1For 2021, generally fully refundable; partially refundable if no principal place of abode in U.S. for one-half of year.

Classroom expenses of elementary and secondary school teachers

Classroom expense deduction 2021 2022
Maximum above-the-line deduction $250 $300

Earned Income Tax Credit (EITC)

Investment income limit 2021 2022
Excessive investment income limit (“disqualified income limit”) $10,000 $10,300

Maximum amount of EITC per number of children 2021 2022
0 children $1,502 $560
1 child $3,618 $3,733
2 children $5,980 $6,164
3 or more children $6,728 $6,935

Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received) 2021 2022
0 children $9,820 $7,320
1 child $10,640 $10,980
2 or more children $14,950 $15,410

Threshold phaseout amount for joint filers per number of children 2021 2022
0 children $17,560 $15,290
1 child $25,470 $26,260
2 children $25,470 $26,260
3 or more children $25,470 $26,260

Threshold phaseout amount for other filers per number of children 2021 2022
0 children $11,610 $9,160
1 child $19,520 $20,130
2 children $19,520 $20,130
3 or more children $19,520 $20,130

Completed phaseout amount for joint filers per number of children 2021 2022
0 children $27,380 $22,610
1 child $48,108 $49,622
2 children $53,865 $55,529
3 or more children $57,414 $59,187

Completed phaseout amount for other filers per number of children 2021 2022
0 children $21,430 $16,480
1 child $42,158 $43,492
2 children $47,915 $49,399
3 or more children $51,464 $53,057

Expatriation

Covered expatriate 2021 2022
An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) $172,000 $178,000
IRC §877A(3) exclusion amount $744,000 $767,000

Foreign earned income

Amount excluded from income 2021 2022
Exclusion amount $108,700 $112,000

Itemized deductions

Phaseout threshold 2021 2022
Married filing jointly N/A N/A
Head of household N/A N/A
Unmarried N/A N/A
Married filing separately N/A N/A

Kiddie tax

Unearned income limit 2021 2022
Amount exempt from tax $1,100 $1,150
Additional amount taxed at child’s rate $1,100 $1,150
Unearned income over this amount generally taxed at parents’ tax rates $2,200 $2,300

Parent’s election 2021 2022
Election to include child’s income on parent’s return — child’s gross income requirement $1,100 – $11,000 $1,150 – $11,500

AMT 2021 2022
AMT exemption for child subject to kiddie tax Lesser of $7,950 + child’s earned income or $73,600 Lesser of $8,200 + child’s earned income or $75,900

Medicare tax (additional payroll tax and unearned income contribution tax)

Payroll tax 2021 2022
Additional Medicare payroll tax (and self-employment tax) percentage rate 0.90% 0.90%

Applies to wages/self-employment income exceeding 2021 2022
Individuals $200,000 $200,000
Married filing jointly $250,000 $250,000
Married filing separately $125,000 $125,000

Tax on unearned income 2021 2022
Unearned income Medicare contribution tax rate 3.80% 3.80%

Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding 2021 2022
Individuals $200,000 $200,000
Married filing jointly $250,000 $250,000
Married filing separately $125,000 $125,000

Nanny tax

Compensation threshold 2021 2022
Domestic employee coverage threshold $2,300 $2,400

Personal exemption amount

Amount 2021 2022
Personal exemption amount N/A N/A

Married filing jointly 2021 2022
Phaseout threshold amount N/A N/A
Completed phaseout amount after N/A N/A

Head of household 2021 2022
Phaseout threshold amount N/A N/A
Completed phaseout amount after N/A N/A

Unmarried 2021 2022
Phaseout threshold amount N/A N/A
Completed phaseout amount after N/A N/A

Married filing separately 2021 2022
Phaseout threshold amount N/A N/A
Completed phaseout amount after N/A N/A

“Saver’s Credit”

Elective deferrals and IRA or ABLE contributions by certain individuals 2021 2022
Maximum credit amount $1,000 $1,000

Applicable percentage of 50% applies to AGI 2021 2022
Joint return $0 – $39,500 $0 – $41,000
Head of household $0 – $29,625 $0 – $30,750
Other $0 – $19,750 $0 – $20,500

Applicable percentage of 20% applies to AGI 2021 2022
Joint return $39,501 – $43,000 $41,001 – $44,000
Head of household $29,626 – $32,250 $30,751 – $33,000
Other $19,751 – $21,500 $20,501 – $22,000

Applicable percentage of 10% applies to AGI 2021 2022
Joint return $43,001 – $66,000 $44,001 – $68,000
Head of household $32,251 – $49,500 $33,001 – $51,000
Other $21,501 – $33,000 $22,001 – $34,000

Applicable percentage of 0% applies to AGI 2021 2022
Joint return Over $66,000 Over $68,000
Head of household Over $49,500 Over $51,000
Other Over $33,000 Over $34,000

Standard deductions

Amounts 2021 2022
Married filing jointly or surviving spouse $25,100 $25,900
Head of household $18,800 $19,400
Unmarried $12,550 $12,950
Married filing separately $12,550 $12,950
Dependent — standard deduction cannot exceed the greater of $1,100 or $350 + earned income $1,150 or $400 + earned income
Additional deduction for aged or blind (single or head of household) $1,700 $1,750
Additional deduction for aged or blind (all other filing statuses) $1,350 $1,400

Standard mileage rates

Applicable rates 2021 2022
Use of auto for business purposes (cents per mile) $0.56 $0.585
Use of auto for medical purposes (cents per mile) $0.16 $0.18
Use of auto for moving purposes (cents per mile) $0.16 $0.18

2022 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)

Single taxpayers

If taxable income is: Your tax is:
Not over $10,275 10% of taxable income
Over $10,275 to $41,775 $1,027.50 + 12% of the excess over $10,275
Over $41,775 to $89,075 $4,807.50 + 22% of the excess over $41,775
Over $89,075 to $170,050 $15,213.50 + 24% of the excess over $89,075
Over $170,050 to $215,950 $34,647.50 + 32% of the excess over $170,050
Over $215,950 to $539,900 $49,335.50 plus 35% of the excess over $215,950
Over $539,900 $162,718 plus 37% of the excess over $539,900

Married filing jointly and surviving spouses

If taxable income is: Your tax is:
Not over $20,550 10% of taxable income
Over $20,550 to $83,550 $2,055 + 12% of the excess over $20,550
Over $83,550 to $178,150 $9,615 plus 22% of the excess over $83,550
Over $178,150 to $340,100 $30,427 plus 24% of the excess over $178,150
Over $340,100 to $431,900 $69,295 plus 32% of the excess over $340,100
Over $431,900 to $647,850 $98,671 plus 35% of the excess over $431,900
Over $647,850 $174,253.50 plus 37% of the excess over
$647,850

Married individuals filing separately

If taxable income is: Your tax is:
Not over $10,275 10% of taxable income
Over $10,275 to $41,775 $1,027.50 + 12% of the excess over $10,275
Over $41,775 to $89,075 $4,807.50 plus 22% of the excess over $41,775
Over $89,075 to $170,050 $15,213.50 plus 24% of the excess over $89,075
Over $170,050 to $215,950 $34,647.50 plus 32% of the excess over $170,050
Over $215,950 to $323,925 $49,335.50 plus 35% of the excess over $215,950
Over $323,925 $87,126.75 plus 37% of the excess over $323,925

Heads of household

If taxable income is: Your tax is:
Not over $14,650 10% of taxable income
Over $14,650 to $55,900 $1,465 + 12% of the excess over $14,650
Over $55,900 to $89,050 $6,415 plus 22% of the excess over $55,900
Over $89,050 to $170,050 $13,708 plus 24% of the excess over $89,050
Over $170,050 to $215,950 $33,148 plus 32% of the excess over $170,050
Over $215,950 to $539,900 $47,836 plus 35% of the excess over $215,950
Over $539,900 $161,218.50 plus 37% of the excess over $539,900

Trusts and estates

If taxable income is: Your tax is:
Not over $2,750 10% of taxable income
Over $2,750 to $9,850 $275 + 24% of the excess over $2,750
Over $9,850 to $13,450 $1,979 + 35% of the excess over $9,850
Over $13,450 $3,239 + 37% of the excess over $13,450

2021 Federal Income Tax Rate Schedules (Individuals, Trusts, and Estates)

Single taxpayers

If taxable income is: Your tax is:
Not over $9,950 10% of taxable income
Over $9,950 to $40,525 $995 + 12% of the excess over $9,950
Over $40,525 to $86,375 $4,664 + 22% of the excess over $40,525
Over $86,375 to $164,925 $14,751 + 24% of the excess over $86,375
Over $164,925 to $209,425 $33,603 + 32% of the excess over $164,925
Over $209,425 to $523,600 $47,843 plus 35% of the excess over $209,425
Over $523,600 $157,804.25 plus 37% of the excess over $523,600

Married filing jointly and surviving spouses

If taxable income is: Your tax is:
Not over $19,900 10% of taxable income
Over $19,900 to $81,050 $1,990 + 12% of the excess over $19,900
Over $81,050 to $172,750 $9,328 plus 22% of the excess over $81,050
Over $172,750 to $329,850 $29,502 plus 24% of the excess over $172,750
Over $329,850 to $418,850 $67,206 plus 32% of the excess over $329,850
Over $418,850 to $628,300 $95,686 plus 35% of the excess over $418,850
Over $628,300 $168,993.50 plus 37% of the excess over $628,300

Married individuals filing separately

If taxable income is: Your tax is:
Not over $9,950 10% of taxable income
Over $9,950 to $40,525 $995 + 12% of the excess over $9,950
Over $40,525 to $86,375 $4,664 plus 22% of the excess over $40,525
Over $86,375 to $164,925 $14,751 plus 24% of the excess over $86,375
Over $164,925 to $209,425 $33,603 plus 32% of the excess over $164,925
Over $209,425 to $314,150 $47,843 plus 35% of the excess over $209,425
Over $314,150 $84,496.75 plus 37% of the excess over $314,150

Heads of household

If taxable income is: Your tax is:
Not over $14,200 10% of taxable income
Over $14,200 to $54,200 $1,420 + 12% of the excess over $14,200
Over $54,200 to $86,350 $6,220 plus 22% of the excess over $54,200
Over $86,350 to $164,900 $13,293 plus 24% of the excess over $86,350
Over $164,900 to $209,400 $32,145 plus 32% of the excess over $164,900
Over $209,400 to $523,600 $46,385 plus 35% of the excess over $209,400
Over $523,600 $156,355 plus 37% of the excess over $523,600

Trusts and estates

If taxable income is: Your tax is:
Not over $2,650 10% of taxable income
Over $2,650 to $9,550 $265 + 24% of the excess over $2,650
Over $9,550 to $13,050 $1,921 + 35% of the excess over $9,550
Over $13,050 $3,146 + 37% of the excess over $13,050

Business Planning

Adoption Assistance Programs

Adoption assistance 2021 2022
Maximum amount that can be excluded from employee’s gross income $14,440 $14,890
Phaseout threshold amount $216,660 $223,410
Completed phaseout amount after $256,660 $263,410

Earnings subject to FICA taxes (taxable wage base)

FICA tax 2021 2022
Maximum annual earnings subject to Social Security taxes $142,800 $147,000
Social Security and Medicare combined tax rate 15.30%1 15.30%1
OASDI portion (Social Security) 12.40% 12.40%
Hospital Insurance portion (Medicare) 2.90%1 2.90%1

1An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couple’s combined wages (to the extent the combined wages exceed $250,000).

Health insurance deduction for self-employed

Health insurance premiums 2021 2022
Deduction for health insurance premiums paid by self-employed persons 100% 100%

Qualified transportation fringe benefits

Qualified transportation fringe benefits 2021 2022
Commuter vehicles and transit pass monthly exclusion amount $270 $280
Qualified parking monthly exclusion amount $270 $280
Qualified bicycle commuting reimbursement fringe benefit (monthly amount) N/A N/A

Section 179 expensing

Section 179 expensing 2021 2022
Maximum amount that may be deducted under IRC Section 179 $1,050,000 $1,080,000
Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount $2,620,000 $2,700,000

Small business tax credit for providing health-care coverage

Amount of credit 2021 2022
Maximum credit percentage 50% 50%

Partial credit 2021 2022
Number of full-time equivalent employees (FTEs) fewer than: 25 25
Maximum average annual wages less than: $55,600 $57,400

Full credit 2021 2022
Number of full-time equivalent employees (FTEs) no more than: 10 10
Maximum average annual wages less than or equal to: $27,800 $28,700

Special additional first-year depreciation allowance

Bonus depreciation 2021 2022
“Bonus” depreciation for qualified property acquired and placed in service during specified time periods 100% 100%

Standard mileage rate (per mile)

Business use of auto 2021 2022
Use of auto for business purposes $0.56 $0.585

Education Planning

American Opportunity and Lifetime Learning Credits

Education credits 2021 2022
Maximum American Opportunity credit $2,500 $2,500
Maximum Lifetime Learning credit $2,000 $2,000

MAGI phaseout range for American Opportunity credit 2021 2022
Single — phaseout threshold amount $80,000 $80,000
Single — completed phaseout amount after $90,000 $90,000
Married filing jointly — phaseout threshold amount $160,000 $160,000
Married filing jointly — completed phaseout amount after $180,000 $180,000

MAGI phaseout range for Lifetime Learning credit 2021 2022
Single — phaseout threshold amount $80,000 $80,000
Single — completed phaseout amount after $90,000 $90,000
Married filing jointly — phaseout threshold amount $160,000 $160,000
Married filing jointly — completed phaseout amount after $180,000 $180,000

Coverdell education savings accounts

Coverdell ESAs 2021 2022
Annual contribution limit $2,000 $2,000

MAGI phaseout range for Coverdell education savings accounts 2021 2022
Single — phaseout threshold amount $95,000 $95,000
Single — completed phaseout amount after $110,000 $110,000
Married filing jointly — phaseout threshold amount $190,000 $190,000
Married filing jointly — phaseout threshold amount $220,000 $220,000

Deduction for qualified higher education expenses

Higher education expenses 2021 2022
Maximum deduction N/A N/A

MAGI maximum for full $4,000 deduction 2021 2022
Single N/A N/A
Married filing jointly N/A N/A

MAGI range for $2,000 deduction 2021 2022
Single — MAGI greater than this amount: N/A N/A
Single — MAGI does not exceed this amount: N/A N/A
Married filing jointly — MAGI greater than this amount: N/A N/A
Married filing jointly — MAGI does not exceed this amount: N/A N/A

Deduction for student loan interest

Education loan interest deduction 2021 2022
Maximum deduction for interest paid on qualified education loans $2,500 $2,500

MAGI phaseout range 2021 2022
Single — phaseout threshold amount $70,000 $70,000
Single — completed phaseout amount after $85,000 $85,000
Married filing jointly — phaseout threshold amount $140,000 $145,000
Married filing jointly — completed phaseout amount after $170,000 $175,000

Gift tax exclusion

Gift tax 2021 2022
Annual gift tax exclusion — single individual $15,000 $16,000
Annual gift tax exclusion — joint gift $30,000 $32,000
Lump-sum gift to 529 plan — single individual $75,000 $80,000
Lump-sum gift to 529 plan — joint gift $150,000 $160,000

Kiddie tax

Kiddie tax 2021 2022
Children’s unearned income over this amount generally taxed at parents’ tax rates $2,200 $2,300

U.S. savings bonds interest exclusion for college expenses

Joint returns 2021 2022
Phaseout threshold for joint returns $124,800 $128,650
Completed phaseout amount after $154,800 $158,650

Other returns 2021 2022
Phaseout threshold for other returns $83,200 $85,800
Completed phaseout amount after $98,200 $100,800

Protection Planning

Eligible long-term care premium deduction limits:

LTC premium deduction limits 2021 2022
Age 40 or under $450 $450
Age 41-50 $850 $850
Age 51-60 $1,690 $1,690
Age 61-70 $4,520 $4,510
Over age 70 $5,640 $5,640

Per diem limit:

LTC periodic payments 2021 2022
Periodic payments for qualified long-term care insurance/certain life insurance $400 $390

Archer Medical Savings Accounts

High deductible health plan —
self-only coverage		 2021 2022
Annual deductible — minimum $2,400 $2,450
Annual deductible — maximum $3,600 $3,700
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed $4,800 $4,950

High deductible health plan — family coverage 2021 2022
Annual deductible — minimum $4,800 $4,950
Annual deductible — maximum $7,150 $7,400
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed $8,750 $9,050

Flexible spending account (FSA) for health care

Health care FSAs 2021 2022
Maximum salary reduction contribution $2,750 $2,850

Health Savings Accounts (HSAs)

Annual contribution limit 2021 2022
Self-only coverage $3,600 $3,650
Family coverage $7,200 $7,300

High deductible health plan —
self-only coverage		 2021 2022
Annual deductible — minimum $1,400 $1,400
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed $7,000 $7,050

High deductible health plan —
family coverage		 2021 2022
Annual deductible — minimum $2,800 $2,800
Annual out-of-pocket expenses required to be paid (other than for premiums) can’t exceed $14,000 $14,100

Catch-up contributions 2021 2022
Annual catch-up contribution limit for individuals age 55 or older $1,000 $1,000

Estate Planning

Key indexed figures 2021 2022
Annual gift exclusion: $15,000 $16,000
Gift and estate tax applicable exclusion amount: $11,700,000 + DSUEA1 $12,060,000 + DSUEA1
Noncitizen spouse annual gift exclusion: $159,000 $164,000
Generation-skipping transfer
(GST) tax exemption:		 $11,700,0002 $12,060,0002
Special use valuation limit (qualified real property in decedent’s gross estate): $1,190,000 $1,230,000

1Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portable for 2011 and later years)

2The GST tax exemption is not portable

2021 and 2022 gift and estate tax rate schedule

Taxable Estate Tentative Tax Equals Plus Of Amount Over
0 – $10,000 $0 18% $0
$10,000 – $20,000 $1,800 20% $10,000
$20,000 – $40,000 $3,800 22% $20,000
$40,000 – $60,000 $8,200 24% $40,000
$60,000 – $80,000 $13,000 26% $60,000
$80,000 – $100,000 $18,200 28% $80,000
$100,000 – $150,000 $23,800 30% $100,000
$150,000 – $250,000 $38,800 32% $150,000
$250,000 – $500,000 $70,800 34% $250,000
$500,000 – $750,000 $155,800 37% $500,000
$750,000 – $1,000,000 $248,300 39% $750,000
$1,000,000 + $345,800 40% $1,000,000
Credit shelter amount $11,700,000 in 2021 and $12,060,000 in 2022</span > Unified credit amount $4,625,800 in 2021 and $4,769,800 in 2022

Government Benefits

Social Security

Social Security Cost-of-Living Adjustment (COLA) 2021 2022
For Social Security and Supplemental Security Income (SSI) beneficiaries 1.30% 5.90%

Tax rate — Employee 2021 2022
FICA tax — Employee 7.65% 7.65%
Social Security (OASDI)
portion of tax		 6.20% 6.20%
Medicare (HI) portion of tax 1.45%1 1.45%1

Tax rate — Self-Employed 2021 2022
Self-Employed 15.30% 15.30%
Social Security (OASDI) portion of tax 12.40% 12.40%
Medicare (HI) portion of tax 2.90%1 2.90%1

1An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).

Maximum taxable earnings 2021 2022
Social Security (OASDI only) $142,800 $147,000
Medicare (HI only) No limit No limit

Quarter of coverage 2021 2022
Earnings required $1,470 $1,510

Retirement earnings test — exempt amounts — Under full retirement age — Benefits reduced by $1 for each $2 earned above: 2021 2022
Yearly figure $18,960 $19,560
Monthly figure $1,580 $1,630

Retirement earnings test — exempt amounts — Year individual reaches full retirement age — Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age): 2021 2022
Yearly figure $50,520 $51,960
Monthly figure $4,210 $4,330

Retirement earnings test — exempt amounts — Beginning the month individual attains full retirement age 2021 2022
No limit on earnings No limit on earnings

Social Security disability thresholds 2021 2022
Substantial gainful activity (SGA) for the sighted (monthly figure) $1,310 $1,350
Substantial gainful activity for the blind (monthly figure) $2,190 $2,260
Trial work period (TWP) (monthly figure) $940 $970

SSI federal payment standard 2021 2022
Individual (monthly figure) $794 $841
Couple (monthly figure) $1,191 $1,261

SSI resource limits 2021 2022
Individual $2,000 $2,000
Couple $3,000 $3,000

SSI student exclusion limits 2021 2022
Monthly limit $1,930 $2,040
Annual limit $7,770 $8,230

Maximum Social Security benefit 2021 2022
Worker retiring at full retirement age (monthly figure) $3,148 $3,345

Formula for Monthly Primary Insurance Amount (PIA) 2021 2022
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y) X=$996 Y=$6,002 X=$1,024 Y=$6,172

Medicare

Medicare monthly premium amounts — Part A (hospital insurance) premium 2021 2022
Individuals with 40 or more quarters of Medicare-covered employment $0 $0
Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insurance Up to $471 Up to $499

Medicare monthly premium amounts — Part B (medical insurance) monthly premium — for beneficiaries who file an individual income tax return with income that is: 2021 2022
Less than or equal to $91,000 $148.502 $170.102
$91,001 – $114,000 $207.90 $238.10
$114,001 – $142,000 $297.00 $340.20
$142,001 – $170,000 $386.10 $442.30
$170,001 – $499,999 $475.20 $544.30
$500,000 and above $504.90 $578.30

Medicare monthly premium amounts — Part B (medical insurance) monthly premium — for beneficiaries who file a joint income tax return with income that is: 2021 2022
Less than or equal to $182,000 $148.502 $170.102
$182,001 – $228,000 $207.90 $238.10
$228,001 – $284,000 $297.00 $340.20
$284,001 – $340,000 $386.10 $442.30
$340,001 – $749,999 $475.20 $544.30
$750,000 and above $504.90 $578.30

Medicare monthly premium amounts — Part B (medical insurance) monthly premium — for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is: 2021 2022
Less than or equal to $91,000 $148.502 $170.102
$91,001 – $408,999 $475.20 $544.30
$409,000 and above $504.90 $578.30

2This is the standard Part B premium amount. However, some people who get Social Security benefits will pay more or less than this amount.

Original Medicare plan deductible and coinsurance amounts — Part A (hospital insurance) 2021 2022
Deductible per benefit period $1,484 $1,556
Coinsurance per day for 61st to 90th day of each benefit period $371 $389
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days — nonrenewable) $742 $778

Original Medicare plan deductible and coinsurance amounts 2021 2022
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period $185.50 $194.50

Original Medicare plan deductible and coinsurance amounts — Part B (medical insurance) annual deductible 2021 2022
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met $203 $233

Medicaid

Income threshold 2021 2022
Monthly income threshold for income-cap states (“300 percent cap limit”) $2,382 $2,523

Monthly maintenance needs allowance for at-home spouse 2021 2022
Minimum3 $2,155.00 $2,177.50
Maximum $3,259.50 TBD

Community spousal resource allowance 2021 2022
Minimum $26,076.00 TBD
Maximum $130,380.00 TBD

3Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.

Retirement Planning

Employee/individual contribution limits

Elective deferral limits 2021 2022
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 [Includes Roth 401(k) and Roth 403(b) contributions] Lesser of $19,500 or 100% of participant’s compensation Lesser of $20,500 or 100% of participant’s compensation
SIMPLE 401(k) plans and SIMPLE IRA plans1 Lesser of $13,500 or 100% of participant’s compensation Lesser of $14,000 or 100% of participant’s compensation

1Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).

IRA contribution limits 2021 2022
Traditional IRAs Lesser of $6,000 or 100% of earned income Lesser of $6,000 or 100% of earned income
Roth IRAs Lesser of $6,000 or 100% of earned income Lesser of $6,000 or 100% of earned income

Additional “catch-up” limits (individuals age 50 or older) 2021 2022
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs2 $6,500 $6,500
SIMPLE 401(k) plans and SIMPLE IRA plans $3,000 $3,000
IRAs (traditional and Roth) $1,000 $1,000

2Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

Employer contribution/benefit3 limits

Defined benefit plan limits 2021 2022
Annual contribution limit per participant No predetermined limit. Contributions based on amount needed to fund promised benefits. No predetermined limit. Contributions based on amount needed to fund promised benefits.
Annual benefit limit per participant Lesser of $230,000 or 100% of average compensation for highest three consecutive years Lesser of $245,000 or 100% of average compensation for highest three consecutive years

Defined contribution plan limits [qualified plans, 403(b) plans, SEP, and SIMPLE plans] 2021 2022
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) (does not apply to SIMPLE IRA plans) Lesser of $58,000 or 100% (25% for SEP) of participant’s compensation Lesser of $61,000 or 100% (25% for SEP) of participant’s compensation
Maximum tax-deductible employer contribution [not applicable to 403(b) plans] 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans 25% of total compensation of employees covered under the plan (20% if self employed) plus any employee pre-tax and Roth contributions; 100% for SIMPLE plans

3For self-employed individuals, compensation generally means earned income. This means that, for qualified plans, deductible contributions for a self-employed individual are limited to 20% of net earnings from self-employment (net profits minus self-employment tax deduction), and special rules apply in calculating the annual additions limit.

Compensation limits/thresholds

Retirement plan compensation limits 2021 2022
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans and SEPs) $290,000 $305,000
Compensation threshold used to determine a highly compensated employee $130,000 (when 2021 is the look-back year) $135,000 (when 2022 is the look-back year)
Compensation threshold used to determine a key employee in a top-heavy plan $1 for more-than-5% owners, $185,000 for officers, $150,000 for more-than-1% owners “$1 for more-than-5% owners $200,000 for officers $150,000 for more-than-1% owners”
Compensation threshold used to determine a qualifying employee under a SIMPLE plan $5,000 $5,000
Compensation threshold used to determine a qualifying employee under a SEP plan $650 $650

Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers covered by an employer-sponsored plan and filing as: 2021 2022
Single $66,000 – $76,000 $68,000 – $78,000
Married filing jointly $105,000 – $125,000 $109,000 – $129,000
Married filing separately $0 – $10,000 $0 – $10,000

Traditional deductible IRA income limits — Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers not covered by an employer-sponsored retirement plan but filing a: 2021 2022
Joint return with a spouse who is covered by an employer-sponsored retirement plan $198,000 – $208,000 $204,000 – $214,000

Roth IRA compensation limits — Income phase-out range for determining ability to fund Roth IRA for taxpayers filing as: 2021 2022
Single $125,000 – $140,000 $129,000 – $144,000
Married filing jointly $198,000 – $208,000 $204,000 – $214,000
Married filing separately $0 – $10,000 $0 – $10,000

Investment Planning

Maximum tax on long-term capital gains and qualified dividends

0% rate applies (taxable income thresholds) 2021 2022
Single Up to $40,400 Up to $41,675
Married filing jointly Up to $80,800 Up to $83,350
Married filing separately Up to $40,400 Up to $41,675
Head of household Up to $54,100 Up to $55,800

15% rate applies (taxable income thresholds) 2021 2022
Single $40,400 to $445,850 $41,675 to $459,750
Married filing jointly $80,800 to $501,600 $83,350 to $517,200
Married filing separately $40,400 to $250,800 $41,675 to $258,600
Head of household $54,100 to $473,750 $55,800 to $488,500

20% rate applies (taxable income thresholds) 2021 2022
Single Over $445,850 Over $459,750
Married filing jointly Over $501,600 Over $517,200
Married filing separately Over $250,800 Over $258,600
Head of household Over $473,750 Over $488,500

Unearned income Medicare contribution tax (“net investment income tax”)

Amount of tax 2021 2022
Tax percentage 3.80% 3.80%

Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding: 2021 2022
Individuals $200,000 $200,000
Married filing jointly $250,000 $250,000
Married filing separately $125,000 $125,000

IMPORTANT DISCLOSURES
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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The information contained herein represents the views of Westwood Holdings Group, Inc. at a specific point in time and is based on information believed to be reliable. No representation or warranty is made concerning the accuracy or completeness of any data compiled herein. Any statements non-factual in nature constitute only current opinion, which is subject to change. Any statements concerning financial market trends are based on current market conditions, which will fluctuate. Past performance is not indicative of future results. All information provided herein is for informational purposes only and is not intended to be, and should not be interpreted as, an offer, solicitation, or recommendation to buy or sell or otherwise invest in any of the securities/sectors/countries that may be mentioned.