Page 13 - JoFA_Jan_Apr23

Journal of Accountancy

Filing season quick guide — tax year 2022

Single taxpayers Heads of household

If taxable Of the If taxable Of the
income is But not amount income is But not amount
over over Tax is Plus over over over Tax is Plus over
$0 $10,275 10% $0 $0 $14,650 10% $0
$10,275 $41,775 $1,027.50 12% $10,275 $14,650 $55,900 $1,465 12% $14,650
$41,775 $89,075 $4,807.50 22% $41,775 $55,900 $89,050 $6,415 22% $55,900
$89,075 $170,050 $15,213.50 24% $89,075 $89,050 $170,050 $13,708 24% $89,050
$170,050 $215,950 $34,647.50 32% $170,050 $170,050 $215,950 $33,148 32% $170,050
$215,950 $539,900 $49,335.50 35% $215,950 $215,950 $539,900 $47,836 35% $215,950
$539,900 $162,718 37% $539,900 $539,900 $161,218.50 37% $539,900

Married taxpayers filing joint returns and Trusts and estates
surviving spouses If taxable Of the
If taxable Of the income is But not amount
income is But not amount over over Tax is Plus over
over over Tax is Plus over $0 $2,750 10% $0
$0 $20,550 10% $0 $2,750 $9,850 $275 24% $2,750
$20,550 $83,550 $2,055 12% $20,550
$9,850 $13,450 $1,979 35% $9,850
$83,550 $178,150 $9,615 22% $83,550 $13,450 $3,239 37% $13,450
$178,150 $340,100 $30,427 24% $178,150
$340,100 $431,900 $69,295 32% $340,100 Long-term capital gains rates
$431,900 $647,850 $98,671 35% $431,900 0% rate: 15% rate: 20% rate:
$647,850 $174,253.50 37% $647,850 Taxable Taxable Taxable
Filing status income of income of income of
Married taxpayers filing separate returns Married filing $0 to $83,350 $83,351 to $517,201 and
jointly $517,200 over
If taxable Of the
income is But not amount Married filing $0 to $41,675 $41,676 to $258,601 and
over over Tax is Plus over separately $258,600 over
$0 $10,275 10% $0 Heads of $0 to $55,800 $55,801 to $488,501 and
$488,500
over
$10,275 $41,775 $1,027.50 12% $10,275 household $41,676 to $459,751 and
$41,775 $89,075 $4,807.50 22% $41,775 Single $0 to $41,675 $459,750 over
$89,075 $170,050 $15,213.50 24% $89,075 Trusts and $2,801 to $13,701 and
$170,050 $215,950 $34,647.50 32% $170,050 estates $0 to $2,800 $13,700 over
$215,950 $323,925 $49,335.50 35% $215,950
$323,925 $87,126.75 37% $323,925

NET INVESTMENT INCOME TAX KIDDIE TAX
3.8% of the lesser of (1) net investment income or (2) the amount of For a child subject to the kiddie tax, the net unearned income
modified adjusted gross income (MAGI) over these thresholds: of the child (limited to the individual’s taxable income) taxed at
n Single: $200,000. the parents’ marginal tax rate. Net unearned income for 2022 is
n Married filing jointly and surviving spouses: $250,000. the portion of the child’s adjusted gross income (AGI) over the
n Married filing separately: $125,000. sum of: (1) $1,150 plus (2) the greater of $1,150 or, if the child
n Heads of household: $200,000. itemizes deductions, those itemized deductions directly con-
n Estates and trusts: $13,450. nected to the production of the unearned income.
SELF-EMPLOYMENT TAX PERSONAL EXEMPTION
n Tax rate: 15.3% (12.4% OASDI tax plus 2.9% Medicare tax). Personal exemptions are suspended from 2018 through 2025.
n Surtax: 0.9% Medicare surtax is applied to self-employment A deemed personal exemption amount of $4,400 is used for
income in excess of $200,000 (single), $250,000 (married filing purposes of determining who is a “qualifying relative” under Sec.
jointly), or $125,000 (married filing separately). 152(d)(1)(B).
n Wage base: $147,000 of self-employment income for OASDI
(maximum OASDI tax of $18,228; no ceiling on Medicare tax).

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