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It’s about that time of year when you start digging up old receipts and re-learning how to use Excel. Yup, it’s tax season. Nobody likes any surprises when it comes to tax returns or tax refunds. But, you might get some this year. The historical inflation of 2022 triggered some changes to exemptions, deductions and limitations in a number of categories.
Money just isn’t worth what it was in 2021, and the government is recognizing that through some important adjustments. Here’s a quick look at the major changes you can expect when filing for the 2022 tax season.
The Tax Brackets Have Shifted
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For the 2022 tax year, the tax brackets have shifted slightly. The actual percentages to be paid are not changing, however, the qualifying income for each has. You can see a full breakdown of the new qualifying incomes for each tax bracket at IRS.gov. Increases range from several hundred dollars on the lower end, up to just over $16,000 for the highest bracket.
This is good news for individuals who didn’t see a substantial pay increase in 2022. You could find yourself in a lower tax bracket, due to inflation, or at least not in a higher one.
