IRS announces standard tax deduction increase for tax year 2022 to adjust for inflation

(Gray News) - The Internal Revenue Service is increasing the standard tax deduction to adjust for inflation in 2022.

The adjustments generally apply to tax returns that will be filed in 2023, according to the IRS.

The changes account for more than 60 tax provisions, but the IRS said the 2017 Tax Cuts and Jobs Act rates will not be changed.

Of interest to many taxpayers, the standard deduction for married couples filing jointly for the tax year 2022 will rise to $25,900 which is an increase of $800 from the prior year.

According to the IRS, single taxpayers and for those who are married but filing separately, the standard deduction rises from $12,550 to $12,950, roughly a 3.2% increase.

For heads of households, the standard deduction will be $19,400 for the tax year 2022.

Here’s a breakdown of the marginal rates by tax brackets, according to the IRS:

• 37% for individual single taxpayers on incomes greater than $539,900 ($647,850 for married couples filing jointly)
• 35% for incomes over $215,950 ($431,900 for married couples filing jointly)
• 32% for incomes over $170,050 ($340,100 for married couples filing jointly)
• 24% for incomes over $89,075 ($178,150 for married couples filing jointly)
• 22% for incomes over $41,775 ($83,550 for married couples filing jointly)
• 12% for incomes over $10,275 ($20,550 for married couples filing jointly)
• 10% for incomes of single individuals with incomes of $10,275 or less ($20,550 for married couples filing jointly)

It is common practice for adjustments to be made annually to reflect consumer prices. The standard tax deduction increased about 1.2% for the tax year 2021.

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