Each year, various rates of taxation in the U.S. are adjusted in response to inflation. Designed to help taxpayers maintain the purchasing power of their savings, these annual inflation adjustments are important to keep in mind when planning for various expenses. Last month, the IRS released the annual inflation adjustments for the tax year 2022.
Given the immense amount of information to digest, we thought it helpful to highlight the major changes affecting the highest income tax bracket, the new alternative minimum tax (AMT) exemption amounts, standard deduction amounts, retirement and other various tax items through a few handy charts. Please note, these changes are in effect for 2022 and will affect the returns you file for that year in 2023.
If you need further assistance navigating these changes or would like to review your unique situation, please feel free to reach out to a member of our team today!