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IRS Publishes Inflation Adjustments

Tax year 2022 adjustments has been published by the Internal Revenue Service. The recently released changes in Revenue Procedure 2021-45 include increases in the standard deduction and the Alternative Minimum Tax exemption amount.

The standard deduction for married couples filing joining rises to $25,900 an increase of $800 from 2021. It is $12,950, up $400 for single taxpayers and married individuals filing separately, and 19,400, up $600, for heads of households

The Alternative Minimum Tax exemption amount for tax year 2022 is $75,900 and begins to phase out at $539,900 ($118,100 for married couples filing jointly for whom the exemption begins to phase out at $1,079,800). 
 

The maximum Earned Income Tax Credit amount is $6,935 for those eligible who have three or more qualifying children, up from $6,728 for this year. There is a table sho9wng maximum EITC amount for other categories, income thresholds and phase-outs on 2021-45.

The monthly limitation  for qualified transportation fringe benefits and for qualified parking rises to $280. The limitation for employee salary reductions for contributions to health flexible plans rises to $2,580 and cafeteria plan to permit carryovers of unused amount, the maximum carryover is $570.

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