Annually the IRS issues tax brackets that adjust for inflation.
These tax rates for 2021 and will be in effect for taxes that you file in 2022.
This will have seven brackets:
| Marginal Rates | Single | Married filing Jointly |
| 10% | Under $9,950 | Under $19,900 |
| 12% | Over $9,950 | Over $19,900 |
| 22% | $40,525 | $81,050 |
| 24% | $86,375 | $172,750 |
| 32% | $164,925 | $329,850 |
| 35% | $209,425 | $418,850 |
| 37% | $523,600 | $628,300 |
Standard Deductions Increased
To give it an inflation boost, standard deductions are increased.
Standard deduction is a flat amount that reduces your income that can be subject to taxes.
Single Tax Payers- $12,550
Married filing jointly- $25,100
Head of Households- $18,800
If you have any significant life-changing events, can affect your tax bracket. Your deductions and the amount that you pay in taxes will change.
Let us know what you think, we are a full service tax preparation company that helps individuals and businesses ease the burden of tax compliance.
