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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.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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