Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2022.<\/p>\n
Estate, Gift, and Generation-Skipping Transfer Tax<\/strong><\/p>\n \u2022The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2022is $16,000, up from $15,000 in 2021. Standard Deduction<\/strong><\/p>\n Taxpayers can generally choose to itemize certain deductions or claim a standard deduction on their federal income tax returns. In 2022, the standard deduction is:<\/p>\n \u2022$12,950 (up from $12,550 in 2021) for single filers or married individuals filing separate returns Special rules apply for those who can be claimed as a dependent by another taxpayer.<\/p>\n IRAs\u00a0<\/strong><\/p>\n The combined annual limit on contributions to traditional and Roth IRAs is $6,000 in 2022 (the same as in 2021), with individuals age 50 or older able to contribute an additional $1,000. The limit on contributions to a Roth IRA phases out for certain modified adjusted gross income (MAGI) ranges(see chart).For individuals who are covered by a work place retirement plan, the deduction for contributions to a traditional IRA also phases out for certain MAGI ranges(see chart).The limit on nondeductible contributions to a traditional IRA is not subject to phase out based on MAGI.<\/p>\n Employer Retirement Plans<\/strong><\/p>\n \u2022Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $20,500 in compensation in 2022 (up from $19,500 in 2021);employees age 50 or older can defer up to an additional $6,500 in 2022 (the same as in 2021). Kiddie Tax: Child’s Unearned Income <\/p>\n Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2022. Estate, Gift, and Generation-Skipping Transfer Tax \u2022The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2022is $16,000, […]<\/p>\n","protected":false},"author":1,"featured_media":9353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50],"tags":[],"yoast_head":"\n
\n\u2022The gift and estate tax basic exclusion amount (and generation-skipping transfer tax exemption) for 2022is $12,060,000, up from $11,700,000 in 2021.<\/p>\n
\n\u2022$25,900 (up from $25,100 in 2021) for married joint filers
\n\u2022$19,400 (up from $18,800 in 2021) for heads of house hold The additional standard deduction amount for the blind and those age 65 or older in 2022 is:
\n\u2022$1,750 (up from $1,700 in 2021) for single filers and heads of household\u2022$1,400 (up from $1,350 in 2021) for all other filing statuses.<\/p>\n
\n\u2022Employees participating in a SIMPLE retirement plan can defer up to $14,000 in 2022 (up from $13,500 in2021), and employees age 50 or older can defer up to an additional $3,000 in 2022 (the same as in2021).<\/p>\n
\n<\/strong>Under the kiddie tax, a child’s unearned income above$2,300 in 2022 (up from $2,200 in 2021) is taxed using the parents’ tax rates.<\/p>\nPrepared by Broadridge Investor Communication Solutions, Inc. Copyright 2022<\/h5>\n
Non-deposit investment products and services are offered through CUSO Financial Services, LP (\u201cCFS\u201d) a registered broker-dealer(Member FINRA\/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA\/NCUSIF or other wise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS for investment services. Atria Wealth Solutions, Inc. (\u201cAtria\u201d) is a modern wealth management solutions holding company. Atria is not a registered broker-dealer and\/or Registered Investment Advisor and does not provide investment advice. Investment advice is only provided through Atria\u2019s subsidiaries. CUSO Financial Services, LP is a subsidiary of Atria.<\/h5>\n","protected":false},"excerpt":{"rendered":"