Tax CPA Atlanta – Individual Tax Changes

The tax rate structure, which ranges from 10 to 37 percent, remains similar to 2021; however, the tax-bracket thresholds increase for each filing status.

Standard deductions also rise, and as a reminder, personal exemptions have been eliminated through tax year 2025.

Standard Deduction
The standard deduction increases to $12,950 for individuals (up from $12,550 in 2021) and to $25,900 for married couples (up from $25,100 in 2021).

Alternative Minimum Tax (AMT)
AMT exemption amounts saw an increase to $75,900 for individuals (up from $73,600 in 2021) and $118,100 for married couples filing jointly (up from $114,600 in 2021).

“Kiddie Tax”
The “kiddie tax” is $1,150.

Estate and Gift Taxes
The maximum tax rate remains at 40 percent. The annual exclusion for gifts increases to $16,000.

Adoption Credit
In 2022, a nonrefundable credit of up to $14,890 is available for qualified adoption expenses for each eligible child.

Earned Income Tax Credit
The maximum Earned Income Tax Credit (EITC) for low, and moderate-income workers and working families increases to $6,935 (up from $6,728 in 2021).

Child Tax Credit
For tax years 2018 through 2025, the child tax credit is $2,000 per child.

Child and Dependent Care Tax Credit
You may qualify for a credit of up to $1,050 or 35 percent of $3,000 of eligible expenses in 2022

Don’t hesitate to call if you have any questions or want to get a head start on tax planning for the year ahead.

User | 16/01/2022