Page 9 - Supplement to 2022 Income Tax

Estimating Your 2022 Taxes

Estimating Your 2022 Taxes

When this Supplement was produced, Congress was considering possible revisions to the stalled Build Back Better
bill, as well as other tax law changes that could impact estimated taxes for 2022. See jklasser.com for any update.

Note: The page references in the boldface headings below are For Roth IRAs, the $6,000 or $7,000 contribution
to the text of J.K. Lasser’s Your Income Tax 2022. Page references limit (all Roth contributions are nondeductible) is
within the items themselves (after the headings) are to the pages
of this Supplement unless otherwise noted. phased out for married persons filing jointly and
qualifying widows or widowers with 2022 MAGI
In estimating your 2022 tax liability, take into exceeding $204,000, up from $198,000, and the
account relevant cost-of-living adjustments to various phaseout will be complete if MAGI is $214,000 or
deduction, credit, and exclusion amounts shown below, more. For single taxpayers and heads of household,
the 2022 tax rate tables (see page 12), the deductible the phaseout threshold is increasing to $129,000
standard mileage rates for 2022 (see page 4), and the from $125,000; the phaseout will be complete if 2022
Social Security, Medicare, and self-employment tax MAGI is $144,000 or more.
limits for 2022 (see pages 4–5). For both traditional and Roth IRA contributions,
married persons filing separately are treated as single
Retirement Plan Cost-of-Living if they live apart for the whole year. If the spouses
Adjustments for 2022 file separately and live together at any time during

Traditional IRA and Roth IRA contributions for 2022 the year, and either of them is an active participant
(pages 216–225, 254–259). The basic contribution in an employer retirement plan, a deduction for
limit for traditional and Roth IRAs is $6,000, which is traditional IRA contributions is phased out for each
unchanged from 2021. The $6,000 limit is increased spouse over a MAGI range of $0 to $10,000. For
by $1,000 for those who will be age 50 or older by the Roth IRA contributions, the contribution limit for
end of 2022. married persons filing separately is phased out over
For traditional IRAs, the $6,000 or $7,000 (age 50 the $0 to $10,000 MAGI phaseout range if they live
or older) contribution limit is also the deductible limit together at any time during the year, without regard to
except for active participants in employer retirement participation in an employer retirement plan.
plans with modified adjusted gross income (MAGI)
above the phaseout threshold. For active participants Elective deferrals to employer retirement plans for
who are married filing jointly or qualifying widows 2022 (pages 194–195, 198–201, 724). The basic limit
or widowers, the phaseout for 2022 deductible for elective deferrals in 2022 is $20,500, up from
contributions to traditional IRAs begins at MAGI $19,500 in 2021. The $20,500 limit applies to 401(k),
of $109,000 (from $105,000), with the phaseout 403(b), and 457 plans, the federal government’s Thrift
complete when MAGI is $129,000 or more. For Savings plan, and pre-1997 salary-reduction Simplified
single taxpayers and heads of household, the phaseout Employee Pension (SEP) plans. If such plans allow,
threshold is $68,000 (from $66,000); the phaseout is individuals who are (or will be) age 50 or older by
complete when MAGI is $78,000 or more. the end of the year may make an additional “catch-up
The phaseout threshold for a married person contribution”. For 2022, the catch-up contribution is
filing jointly who is not an active plan participant $6,500 (unchanged from 2021).
but whose spouse is an active participant increases For a SIMPLE IRA, the deferral limit is $14,000
to $204,000 (from $198,000), and the phaseout for in 2022 (up from $13,500 in 2021) with a catch-up
that nonparticipant spouse is complete when MAGI is contribution of $3,000 for those age 50 or over by the
$214,000 or more. end of 2022 (unchanged from 2021).

Supplement to J.K. Lasser’s Your Income Tax 2022 | 7