IRS says tax brackets will be higher in 2022 due to surging inflation

cincylink — Mon, 15 Nov 2021 05:29:30 +0000

MICHELLE: BECAUSE OF SURGING CONSUMER PRICES, THE IRS JUST ANNOUNCED ADJUSTMENTS TO FEDERAL INCOME BRACKETS. WESH 2’S KELSI THORUD SPOKE WITH A FINANCIAL PLANNER ABOUT WHAT YOU NEED TO BE AWA ORE KELSI: 2022’S INCOME TAX BRKEACTS WILL BE HIGHER. THE IRS MAKING THE ANNOUNCEMENT THIS WEEK. THEY MOVED IT BY 6.2 %.HEY MOVED IT BY 6.2

The IRS announced this week that 2022's income tax brackets will be higher."They moved it by 6.2%," Joe Bert, a Central Florida certified financial planner, said.Bert noted that 6.2% is a significant jump."Generally, the tax bracket adjustments are only one maybe 2% per year," Bert said.The reason behind the larger adjustment is the recent spike in inflation, he said."With the increase we've had in inflation, Social Security's adjusted and the tax brackets adjusted. There's supposed to be an index for inflation and that's what happened,” Bert said.Bert said it could save some money in 2023."If your income hasn't changed much, you're probably going to pay a little less in taxes,” Bert said.The IRS is also increasing the standard deduction. It will increase to $25,900 for married couples filing together, $12,950 for single taxpayers and $19,400 for heads of household.The changes will apply to 2022 tax returns which are not filed until 2023.

ORLANDO, Fla. —

The IRS announced this week that 2022's income tax brackets will be higher.

"They moved it by 6.2%," Joe Bert, a Central Florida certified financial planner, said.

Bert noted that 6.2% is a significant jump.

"Generally, the tax bracket adjustments are only one maybe 2% per year," Bert said.

The reason behind the larger adjustment is the recent spike in inflation, he said.

"With the increase we've had in inflation, Social Security's adjusted and the tax brackets adjusted. There's supposed to be an index for inflation and that's what happened,” Bert said.

Bert said it could save some money in 2023.

"If your income hasn't changed much, you're probably going to pay a little less in taxes,” Bert said.

The IRS is also increasing the standard deduction. It will increase to $25,900 for married couples filing together, $12,950 for single taxpayers and $19,400 for heads of household.

The changes will apply to 2022 tax returns which are not filed until 2023.

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IRS says tax brackets will be higher in 2022 due to surging inflation