Honu Wealth Management
Garth A Williams, MBA, CFP®
Financial Advisor
1307 S Mary Ave, Suite 101
Sunnyvale, CA 94087
650-917-3400
garth@honuwealth.com
www.HonuWealth.com
 
 




2022 Key Numbers

 

Individual Income Tax Planning

Adoption credit

Adoption credit20212022
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 amount20212022
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 threshold20212022
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)20212022
All taxpayers except married filing separately$199,900 $206,100
Married filing separately$99,950$103,050

Charitable deductions

Use of auto20212022
Deductible standard mileage rate$0.14$0.14
Charitable fundraising "insubstantial benefit" limitation20212022
Low-cost article (re: unrelated business income)$11.30$11.70
Gifts to donor in return for contribution20212022
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 credit2021
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):20212022
Married filing jointly or surviving spouse$150,000N/A
Head of household$112,500N/A
Single or married filing separately$75,000N/A
Phaseout -- any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20212022
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 amount120212022
PercentageN/A15%
AmountN/A$2,500
Maximum refundable amount of creditFully 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 deduction20212022
Maximum above-the-line deduction$250$300

Earned income tax credit (EITC)

Investment income limit20212022
Excessive investment income limit ("disqualified income limit")$10,000 $10,300
Maximum amount of EITC per number of children20212022
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)20212022
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 children20212022
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 children20212022
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 children20212022
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 children20212022
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 expatriate20212022
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 income20212022
Exclusion amount$108,700 $112,000

Itemized deductions

Phaseout threshold20212022
Married filing jointlyN/AN/A
Head of householdN/AN/A
UnmarriedN/AN/A
Married filing separatelyN/AN/A

Kiddie tax

Unearned income limit20212022
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 election20212022
Election to include child's income on parent's return -- child's gross income requirement$1,100 - $11,000 $1,150 - $11,500
AMT20212022
AMT exemption for child subject to kiddie taxLesser 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 tax20212022
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20212022
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20212022
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20212022
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20212022
Domestic employee coverage threshold$2,300$2,400

Personal exemption amount

Amount20212022
Personal exemption amountN/A N/A
Married filing jointly20212022
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Head of household20212022
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Unmarried20212022
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Married filing separately20212022
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/AN/A

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20212022
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20212022
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 AGI20212022
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 AGI20212022
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 AGI20212022
Joint ReturnOver $66,000 Over $68,000
Head of HouseholdOver $49,500Over $51,000
OtherOver $33,000Over $34,000

Standard deductions

Amounts20212022
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 20212022
Use of auto for business purposes (cents per mile)$0.56TBD
Use of auto for medical purposes (cents per mile)$0.16TBD
Use of auto for moving purposes (cents per mile)$0.16TBD


This information was developed by Forefield, Inc. an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2021.