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CORRECTED TO POST # 3 BELOW
Similar to what I did for the last two years, here is a list of important “trigger” income levels for 2022.
Numbers are actual AGI/MAGI (i.e. - before standard or itemized deductions) unless indicated as Taxable Income by an asterisk * which means you can add $25,900 MFJ/$12,950 single if you use the standard deduction (+ another $1400 per person over 65 or blind if MFJ/ $1750 if over 65 or blind single). Note also that MAGI and AGI are often not the same in different sections of the tax code. If you are close to one of the limits, ensure you know what is and is not included in income for that particular limit. This thread is a good example of how important it is to know precisely what counts in MAGI for your particular issue. https://www.early-retirement.org/for...-a-108104.html
I have put social security taxation levels in a separate post (here https://www.early-retirement.org/fo...-income-levels-2021-a-106300.html#post2506932), because it is a little complicated (not too bad) and highly dependent on exactly how much social security you receive. (This links to the 2021 thread, Post #2).
This is based on current law; there may be changes. As with the last two years, this is a collaborative effort, so if you have corrections or additions, please post them here and I will adjust this first post as necessary.
Link to 2021 thread is here - https://www.early-retirement.org/forums/f28/the-important-trigger-income-levels-2021-a-106300.html
Income level/effect (as of 1/1/2022) This for Married Filing Jointly. Numbers for single taxpayers are listed separately below.
$20,551* - 12% marginal tax bracket for ordinary income
$39,120 - maximum two people collecting Social Security prior to FRA can earn ($19,560 each) in W-2 income before Social Security is reduced
$41,001 – Savers Credit drops from 50% to 20%
$44,001 – Savers Credit drops from 20% to 10%
$68,001 – Savers Credit eliminated
$69,680 - 400% FPL -- ACA subsidy reduced to the point where premium can be 9.61% of income (Household of two, Lower 48)(note that ACA subsidy levels are based on the prior year’s poverty levels)
$83,351* - Long term capital gains taxed at 15%
$83,551* - 22% marginal tax bracket for ordinary income.
$109,001 - begin limiting traditional IRA deduction amounts (if you have a retirement plan at work)
$129,001 - no traditional IRA deductions allowed (if you have a retirement plan at work)
$145,001 - Student loan interest deduction (up to $2500) phaseout begins
$160,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$175,001 - Student loan interest deduction ends
$178,151* - 24% tax bracket
$180,001 - AOTC/LLC are eliminated
$182,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2020 income)
$204,001 - begin limiting Roth contribution amounts
$214,001 - no Roth contributions allowed (consider backdoor Roth)
$228,001 - IRMAA level 2 surcharge
$250,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$284,001 - IRMAA level 3
$340,001 - IRMAA level 4
$340,101* - 32% tax bracket
$431,901* - 35% tax bracket
$517,201* - 20% long term capital gains rate
$647,851* - 37% tax bracket
Income level/effect (as of 1/1/2022) This is for Single Filers vv. Numbers for Married Filing Jointly are listed separately above ^^.
$10,276* - 12% marginal tax bracket for ordinary income
$19,560 - maximum a single person collecting Social Security prior to FRA can earn in W-2 income before Social Security is reduced
$20,501 – Savers Credit drops from 50% to 20%
$22,001– Savers Credit drops from 20% to 10%
$34,001 – Savers Credit eliminated
$41,676* - Long term capital gains taxed at 15%
$41,776* - 22% marginal tax bracket for ordinary income.
$51,520 - 400% FPL -- ACA subsidy reduced to the point where premium can be 9.61% of income (household of 1, Lower 48)
$68,001 - begin limiting traditional IRA deduction amounts. (if you have a retirement plan at work)
$70,001 - Student loan interest deduction (up to $2500) phaseout begins
$78,001 - no traditional IRA deductions allowed. (if you have a retirement plan at work)
$80,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$85,000 - Student loan interest deduction ends.
$89,076* - 24% tax bracket
$90,001 - AOTC/LLC are eliminated
$91,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2020 income)
$114,001- IRMAA level 2 surcharge
$129,001 - begin limiting Roth contribution amounts
$142,001 - IRMAA level 3
$144,001 - no Roth contributions allowed (consider backdoor Roth)
$170,001 - IRMAA level 4
$170,051* - 32% tax bracket
$200,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$215,951* - 35% tax bracket
$459,751* - 20% long term capital gains rate
$500,001 - IRMAA level 5
$539,901* - 37% tax bracket
__________________
Similar to what I did for the last two years, here is a list of important “trigger” income levels for 2022.
Numbers are actual AGI/MAGI (i.e. - before standard or itemized deductions) unless indicated as Taxable Income by an asterisk * which means you can add $25,900 MFJ/$12,950 single if you use the standard deduction (+ another $1400 per person over 65 or blind if MFJ/ $1750 if over 65 or blind single). Note also that MAGI and AGI are often not the same in different sections of the tax code. If you are close to one of the limits, ensure you know what is and is not included in income for that particular limit. This thread is a good example of how important it is to know precisely what counts in MAGI for your particular issue. https://www.early-retirement.org/for...-a-108104.html
I have put social security taxation levels in a separate post (here https://www.early-retirement.org/fo...-income-levels-2021-a-106300.html#post2506932), because it is a little complicated (not too bad) and highly dependent on exactly how much social security you receive. (This links to the 2021 thread, Post #2).
This is based on current law; there may be changes. As with the last two years, this is a collaborative effort, so if you have corrections or additions, please post them here and I will adjust this first post as necessary.
Link to 2021 thread is here - https://www.early-retirement.org/forums/f28/the-important-trigger-income-levels-2021-a-106300.html
Income level/effect (as of 1/1/2022) This for Married Filing Jointly. Numbers for single taxpayers are listed separately below.
$20,551* - 12% marginal tax bracket for ordinary income
$39,120 - maximum two people collecting Social Security prior to FRA can earn ($19,560 each) in W-2 income before Social Security is reduced
$41,001 – Savers Credit drops from 50% to 20%
$44,001 – Savers Credit drops from 20% to 10%
$68,001 – Savers Credit eliminated
$69,680 - 400% FPL -- ACA subsidy reduced to the point where premium can be 9.61% of income (Household of two, Lower 48)(note that ACA subsidy levels are based on the prior year’s poverty levels)
$83,351* - Long term capital gains taxed at 15%
$83,551* - 22% marginal tax bracket for ordinary income.
$109,001 - begin limiting traditional IRA deduction amounts (if you have a retirement plan at work)
$129,001 - no traditional IRA deductions allowed (if you have a retirement plan at work)
$145,001 - Student loan interest deduction (up to $2500) phaseout begins
$160,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$175,001 - Student loan interest deduction ends
$178,151* - 24% tax bracket
$180,001 - AOTC/LLC are eliminated
$182,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2020 income)
$204,001 - begin limiting Roth contribution amounts
$214,001 - no Roth contributions allowed (consider backdoor Roth)
$228,001 - IRMAA level 2 surcharge
$250,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$284,001 - IRMAA level 3
$340,001 - IRMAA level 4
$340,101* - 32% tax bracket
$431,901* - 35% tax bracket
$517,201* - 20% long term capital gains rate
$647,851* - 37% tax bracket
Income level/effect (as of 1/1/2022) This is for Single Filers vv. Numbers for Married Filing Jointly are listed separately above ^^.
$10,276* - 12% marginal tax bracket for ordinary income
$19,560 - maximum a single person collecting Social Security prior to FRA can earn in W-2 income before Social Security is reduced
$20,501 – Savers Credit drops from 50% to 20%
$22,001– Savers Credit drops from 20% to 10%
$34,001 – Savers Credit eliminated
$41,676* - Long term capital gains taxed at 15%
$41,776* - 22% marginal tax bracket for ordinary income.
$51,520 - 400% FPL -- ACA subsidy reduced to the point where premium can be 9.61% of income (household of 1, Lower 48)
$68,001 - begin limiting traditional IRA deduction amounts. (if you have a retirement plan at work)
$70,001 - Student loan interest deduction (up to $2500) phaseout begins
$78,001 - no traditional IRA deductions allowed. (if you have a retirement plan at work)
$80,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$85,000 - Student loan interest deduction ends.
$89,076* - 24% tax bracket
$90,001 - AOTC/LLC are eliminated
$91,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2020 income)
$114,001- IRMAA level 2 surcharge
$129,001 - begin limiting Roth contribution amounts
$142,001 - IRMAA level 3
$144,001 - no Roth contributions allowed (consider backdoor Roth)
$170,001 - IRMAA level 4
$170,051* - 32% tax bracket
$200,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$215,951* - 35% tax bracket
$459,751* - 20% long term capital gains rate
$500,001 - IRMAA level 5
$539,901* - 37% tax bracket
__________________
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