As we’ve discussed before HERE, tax brackets can change each year or with each new government 2022 is no different, as inflation also proved another reason to change some of the tax brackets. According to the IRS, “the top tax rate remains 37% for individual single taxpayers with incomes greater than $539,900 ($647,850 for married couples filing jointly).”
Additional tax brackets for 2022:
- 35% for incomes over $215,950 single & $431,900 for married/joint filing
- 32% for incomes over $170,050 single & $340,100 for married/joint filing
- 24% for incomes over $89,075 single & $178,150 for married/joint filing
- 22% for incomes over $41,775 single & $83,550 for married/joint filing
- 12% for incomes over $10,275 single & $20,550 for married/joint filing
- 10% for incomes less then $10,275 single & $20,550 for married/joint filing
Child Tax Credit:
This year, the government decided to provide an option for parents to receive the Child Tax Credit monthly, as a means to help families dealing with the pandemic and economic issues. Because of this, parents will need to verify these payments with the amount of the Child Tax Credit that they can claim when they file their 2021 return. This means some families may have received too much and may need to pay some back, while others may benefit and receive the credit on their tax returns. The IRS says they will send a letter/form called 6419 with the Child Tax Credit payments each household received. Filers will need to keep this document ready and available when they file their 2021 taxes.
Will 2022 and the monthly Child Tax Credit continue? That’s a question we’ll all have to stay tuned to find out.