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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |