2022 tax brackets

[ripper1]

I see because of inflation the tax brackets are extending a little higher than usual. 10%.....0-20550. 12%....20550-83550. Standard deduction to 25900. What I can't find is whether there will still be a 0% rate for folks in the 10 to 12% brackets for long term capitol gains and at what income threshold.

 

[RunningBum]

Where have you seen the IRS announce the tax brackets? I see projections, but I haven't seen anything official. In other words, what's your source?

 

[pb4uski]

Yes, as far as I know there will still be 0% on qualified dividends and LTCG, but the thresholds are slightly lower than the top of the 12% tax bracket... about $250 or so as I recall.... but I can't find anything specific on those limits for 2022.

 

[pb4uski]

Where have you seen the IRS announce the tax brackets? I see projections, but I haven't seen anything official. In other words, what's your source?

+1 I haven't seen anything from the IRS yet.

 

[ripper1]

One source would be Bloomberg Tax and Accounting on 9/14 as a projection and there is a couple others with the same numbers. So I do stand corrected but usually these numbers are pretty close if not accurate.

 

[Mark1]

I see because of inflation the tax brackets are extending a little higher than usual. 10%.....0-20550. 12%....20550-83550. Standard deduction to 25900. What I can't find is whether there will still be a 0% rate for folks in the 10 to 12% brackets for long term capitol gains and at what income threshold.

Yup, these are most likely estimates at this point. However, if you anxious to know about the answer to your 0% LTCG questions, I believe the answer is "YES" as that wasn't suppose to change back to 5% until 2026.

 

[RunningBum]

Yup, these are most likely estimates at this point. However, if you anxious to know about the answer to your 0% LTCG questions, I believe the answer is "YES" as that wasn't suppose to change back to 5% until 2026.

When were they 5%?

 

[pb4uski]

Yeah, I don't get that either. Even if Mark1 had a typo and meant 15% when rates revert I think there will still be 0% and 15% rates.

 

[Bigdawg]

https://us.icalculator.info/terminology/us-tax-tables/2022.html

Here is what I'm usiong for planning purposes.

 

[N02L84ER]

When were they 5%?

They were actually 5% in 2006 and 2007.

 

[pb4uski]

OK, I see that but I still don't know how to interpret the comment "However, if you anxious to know about the answer to your 0% LTCG questions, I believe the answer is "YES" as that wasn't suppose to change back to 5% until 2026." because it isn't supposed to change back to 5% in 2026 to my knowledge.

 

[N02L84ER]

I was just answering RunningBum's question. To my knowledge, the rate will remain 0% in 2026.

 

[thefinancebuff]

What I can't find is whether there will still be a 0% rate for folks in the 10 to 12% brackets for long term capitol gains and at what income threshold.

$83,350 for married filing jointly by my calculation.

 

[Mark1]

Yeah, I don't get that either. Even if Mark1 had a typo and meant 15% when rates revert I think there will still be 0% and 15% rates.

Yup, my bad.

 

[ExPatKiwi]

This financial blog site has estimated the new tax rates based on the 3.1% inflation adjustment.


https://thefinancebuff.com/tax-brackets-standard-deduction-0-capital-gains.html

 

[Lakedog]

The IRS released 2022 tax brackets today:

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

 

[F.I.R.E User]

401k raised to $20.5k not counting any company match if any for under 50.

 

[USGrant1962]

The IRS released 2022 tax brackets today:

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

This summary is a little (a lot) easier to read.

https://taxfoundation.org/2022-tax-brackets/