This article explains the new inflation adjustments that are being made by the IRS issued through Rev. Proc. 2021-45. The IRS also cautioned that “with legislation pending in Congress that might affect 2022 tax returns, taxpayers should consult future IRS guidance to determine if the adjusted amounts in Rev. Proc. 2021-45 remain applicable in 2022.” Single individuals that make $10,275 and under are subject to a 10% tax, an increase of $325 from 2021. Other changed amounts for 2022 include unearned income of minor children, alternative minimum tax exemption amounts, interest on education loans, foreign earned income exclusion, and annual exclusion for gifts. To find out more in-depth information on the changes the IRS imposed, click the link.
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