2022 Key Numbers - westwoodgroup.com

Table of content

Individual Income Tax
2022 Federal Income Tax Rates
2021 Federal Income Tax Rates
Business Planning
Education Planning
Protection Planning
Estate Planning
Government Benefits
Retirement Planning
Investment Planning

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

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Alternative Minimum Tax (AMT)

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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

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Alternative Minimum Tax (AMT)

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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

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Charitable deductions

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

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Charitable deductions

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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

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Child tax credit

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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

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Child tax credit

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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

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Child tax credit

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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

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Earned income tax credit (EITC)

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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

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Earned income tax credit (EITC)

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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

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Earned income tax credit (EITC)

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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

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Earned income tax credit (EITC)

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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

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Earned income tax credit (EITC)

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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

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Earned income tax credit (EITC)

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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

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Kiddie tax

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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

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Kiddie tax

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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%

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

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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

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

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

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

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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

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Personal exemption amount

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

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Personal exemption amount

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

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Personal exemption amount

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

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Personal exemption amount

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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

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“Saver’s Credit”

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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

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“Saver’s Credit”

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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

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“Saver’s Credit”

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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

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“Saver’s Credit”

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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%

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Small business tax credit for providing health-care coverage

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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

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Small business tax credit for providing health-care coverage

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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

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American Opportunity and Lifetime Learning Credits

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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

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American Opportunity and Lifetime Learning Credits

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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

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Coverdell education savings accounts

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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

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Deduction for qualified higher education expenses

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

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Deduction for qualified higher education expenses

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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

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Deduction for student loan interest

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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

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U.S. savings bonds interest exclusion for college expenses

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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

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Archer Medical Savings Accounts

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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

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Health Savings Accounts (HSAs)

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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

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Health Savings Accounts (HSAs)

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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

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Health Savings Accounts (HSAs)

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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%

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Social Security

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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

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Social Security

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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).

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Social Security

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

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Social Security

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

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Social Security

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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

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Social Security

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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

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Social Security

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

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Social Security

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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

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Social Security

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

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Social Security

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

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Social Security

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

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Social Security

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

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Social Security

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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

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Medicare

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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

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Medicare

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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

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Medicare

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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.

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Medicare

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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

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Medicare

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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

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Medicare

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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

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Medicaid

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

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Medicaid

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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).

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Employee/individual contribution limits

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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

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Employee/individual contribution limits

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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

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Employer contribution/benefit³ limits

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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

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Compensation limits/thresholds

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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

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Compensation limits/thresholds

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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

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Compensation limits/thresholds

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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

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Maximum tax on long-term capital gains and qualified dividends

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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

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Maximum tax on long-term capital gains and qualified dividends

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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%

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

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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.