| | 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 |
1 Contribution is fully deductible if minimum
contribution amount is met and cost of token gift does not exceed maximum
2 Charitable 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 | |
|---|
| 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 |
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 |
| 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 or $0.625* | | Use of auto for medical purposes (cents per
mile) | $0.16 | $0.18 or $0.22* | | Use of auto for moving purposes (cents per mile) | $0.16 | $0.18 or $0.22* | | * The IRS raised mileage rates for the final 6 months of 2022, so the
higher rates noted above are effective as of July 1, 2022. |
|