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Individual Tax Resources

2022 Tax Year


Personal Exemptions are not eligible for tax years 2018-2025
 

Standard Deductions

  • married couples filing a joint return - $25,900

  • singles and married individuals filing separately - $12,950

  • heads of household - $19,400.

  • Additional deductions for senior citizens and blind people

    • $1,400 for married individuals

    • $1,750 for singles and heads of households.

 

Income Tax Rates

  • 37 percent affects individuals whose income exceeds $539,900                                                                                  ($647,850 for married taxpayers filing a joint return).

  • Marginal tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
     

Estate and Gift Taxes

  • Exemption of $12.06 million per individual for estate, gift, and generation-skipping taxes, with a top tax rate of 40%.

  • Annual exclusion for gifts - $16,000.
     

Alternative Minimum Tax (AMT)

  • Single and head of household - $75,900 

  • Married people filing jointly or for qualifying widows or widowers - $118,100

  • Married taxpayers filing separately - $59,050
     

Flexible Spending Account (FSA) is limited to $2,850 per year and applies only to salary reduction contributions under a health FSA.
 

Tax Credits


Adoption Credit - a nonrefundable (only those with tax liability will benefit) credit of up to $14,890 is available for qualified adoption expenses for each eligible child.
 

Child and Dependent Care Credit (under the age of 13 at the end of the tax year or incapable of self-care).  This tax credit is nonrefundable.

  • May qualify for a credit of up to $1,050 or 35 percent of $3,000 of eligible expenses.

  • Two or more qualifying dependents, you can claim up to 35 percent of $6,000 (or $2,100) of eligible expenses.

  • For higher-income earners, the credit percentage is reduced, but not below 20 percent.
     

Child Tax Credit and Credit for Other Dependents

  • $2,000 per child, under the age of 17. The refundable portion of the credit is $1,400, so that even if taxpayers do not owe any tax, they can still claim the credit.

  • A $500 nonrefundable credit is available for dependents who do not qualify for the Child Tax Credit (i.e., dependents age 17 and older).
     

Earned Income Tax Credit (EITC)

  • For low- and moderate-income workers the maximum earned income tax credit (EITC) is $6,935.

  • For taxpayers with no qualifying children, the maximum credit is $560.

  • For those married filing jointly the maximum income limit (three or more qualifying children) is $59,187

  • For those filing single or head of household the maximum income limit is $53,057.

  • The credit varies by family size, filing status, and other factors, with the maximum credit going to joint filers with three or more qualifying children.
     

Education Expenses


American Opportunity Tax Credit and Lifetime Learning Credit

  • American Opportunity Tax Credit - $2,500 per student

  • Lifetime Learning Credit - $2,000 per return

  • To claim the full credit for either, your modified adjusted gross income must be $80,000 or less ($160,000 or less for married filing jointly).
     

Employer-Provided Educational Assistance
You can exclude up to $5,250 of qualifying postsecondary and graduate education expenses that are reimbursed by your employer.
 

Student Loan Interest
You are able to deduct up to $2,500 in student-loan interest as long as your modified adjusted gross income is less than $70,000 (single) or $140,000 (married filing jointly).

  • The credit cannot be claimed if your modified adjusted gross income is more than $85,000 for single filers and $170,000 if married filing jointly.
     

Retirement
Contribution Limits

  • The elective contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the Thrift Savings Plan is $20,500.

  • For those age 50 or older, the limit is $27,000 ($6,500 catch-up contribution).

 

Retirement Savings Contributions Credit (Saver's Credit)

The adjusted gross income limit for the saver's credit for low and moderate-income workers is

  • $68,000 for married couples filing jointly

  • $51,000 for heads of household

  • $34,000 for married individuals filing separately and for singles.
     

*The maximum credit amount is $2,000 ($4,000 if married filing jointly). Remember that your eligible contributions may be reduced by any recent distributions you received from your ABLE account.

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