transactions Archives - Financial 1 Tax https://financial1tax.com/tag/transactions/ Full service accounting and financial services, from estate and retirement planning, to personal and business tax preparation. Fri, 14 Jan 2022 01:24:37 +0000 en-US hourly 1 https://i0.wp.com/financial1tax.com/wp-content/uploads/2023/07/cropped-F1Tax_fav_2023.png?fit=32%2C32&ssl=1 transactions Archives - Financial 1 Tax https://financial1tax.com/tag/transactions/ 32 32 141097171 Income Tax Key Numbers 2021-2022 https://financial1tax.com/tax-rates-for-2021-2022/ https://financial1tax.com/tax-rates-for-2021-2022/#respond Fri, 14 Jan 2022 00:31:31 +0000 https://financial1tax.com/?p=6059 We've summarized income tax brackets and details for you, for the tax year 2021 and filings in 2022. You can compare rates for both tax years 2021 and 2022 to see the rate changes you can expect for next year. We also provide tax services for cryptocurrency ...

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]]> Financial 1, Tatyana BunichTatyana Bunich CEP.RFC. | Contact us: 410-908-9293 (MD) | 954-892-6020 (FL)

Tax Year 2021 and 2022A new tax season is upon us! We’ve summarized income tax rates and details below for you, for the tax year 2021 and filings in 2022. You can compare rates for both tax years 2021 and 2022 to see the rate changes you can expect for next year. We’ll be addressing these carefully with our clients during the tax season this year, starting January – April 2022, and throughout the year.

The Federal IRS deadline this year is Monday, April 18, 2022, or October 2022 with an extension. It’s important to check your state’s deadlines and guidance. We recommend you prepare early! Since your tax situation is unique, please consult a tax professional for advice. Let us assist you in person, on the phone, or via Zoom.

Support for Cryptocurrencies

We also provide tax services for cryptocurrency, including tax obligations for Bitcoin (BTC), Ethereum (ETH), and other coins and tokens, along with DeFi activities. Have questions?

Federal Income Tax Brackets

Single Filers 2021

for filing due April 2022

Tax rateTaxable income bracketTax owed
10%$0 to $9,95010% of taxable income
12%$9,951 to $40,525$995 plus 12% of the amount over $9,950
22%$40,526 to $86,375$4,664 plus 22% of the amount over $40,525
24%$86,376 to $164,925$14,751 plus 24% of the amount over $86,375
32%$164,926 to $209,425$33,603 plus 32% of the amount over $164,925
35%$209,426 to $523,600$47,843 plus 35% of the amount over $209,425
37%$523,601 or more$157,804.25 plus 37% of the amount over $523,600
Single Filers 2022

for filing due April 2023

Tax rateTaxable income bracketTax owed
10%$0 to $10,27510% of taxable income
12%$10,276 to $41,775$1,027.50 plus 12% of the amount over $10,275
22%$41,776 to $89,075$4,807.50 plus 22% of the amount over $41,775
24%$89,076 to $170,050$15,213.50 plus 24% of the amount over $89,075
32%$170,051 to $215,950$34,647.50 plus 32% of the amount over $170,050
35%$215,951 to $539,900$49,335.50 plus 35% of the amount over $215,950
37%$539,901 or more$162,718 plus 37% of the amount over $539,900
Married, Filing Jointly 2021

for filing due April 2022

Tax rateTaxable income bracketTaxes owed
10%$0 to $19,90010% of taxable income
12%$19,901 to $81,050$1,990 plus 12% of the amount over $19,900
22%$81,051 to $172,750$9,328 plus 22% of the amount over $81,050
24%$172,751 to $329,850$29,502 plus 24% of the amount over $172,750
32%$329,851 to $418,850$67,206 plus 32% of the amount over $329,850
35%$418,851 to $628,300$95,686 plus 35% of the amount over $418,850
37%$628,301 or more$168,993.50 plus 37% of the amount over $628,300
Married, Filing Jointly 2022

for filing due April 2023

Tax rateTaxable income bracketTaxes owed
10%$0 to $20,55010% of taxable income
12%$20,551 to $83,550$2,055 plus 12% of the amount over $20,550
22%$83,551 to $178,150$9,615 plus 22% of the amount over $83,550
24%$178,151 to $340,100$30,427 plus 24% of the amount over $178,150
32%$340,101 to $431,900$69,295 plus 32% of the amount over $340,100
35%$431,901 to $647,850$98,671 plus 35% of the amount over $431,900
37%$647,851 or more$174,253.50 plus 37% of the amount over $647,850
Married, Filing Separately 2021

for filing due April 2022

Tax rateTaxable income bracketTaxes owed
10%$0 to $9,95010% of taxable income
12%$9,951 to $40,525$995 plus 12% of the amount over $9,950
22%$40,526 to $86,375$4,664 plus 22% of the amount over $40,525
24%$86,376 to $164,925$14,751 plus 24% of the amount over $86,375
32%$164,926 to $209,425$33,603 plus 32% of the amount over $164,925
35%$209,426 to $314,150$47,843 plus 35% of the amount over $209,425
37%$314,151 or more$84,496.75 plus 37% of the amount over $314,150
Married, Filing Separately 2022

for filing due April 2023

Tax rateTaxable income bracketTaxes owed
10%$0 to $10,27510% of taxable income
12%$10,276 to $41,775$1,027.50 plus 12% of the amount over $10,275
22%$41,776 to $89,075$4,807.50 plus 22% of the amount over $41,775
24%$89,076 to $170,050$15,213.50 plus 24% of the amount over $89,075
32%$170,051 to $215,950$34,647.50 plus 32% of the amount over $170,050
35%$215,951 to $323,925$49,335.50 plus 35% of the amount over $215,950
37%$323,926 or more$87,126.75 plus 37% of the amount over $323,925
Head of Household 2021

for filing due April 2022

Tax rateTaxable income bracketTaxes owed
10%$0 to $14,20010% of taxable income
12%$14,201 to $54,200$1,420 plus 12% of the amount over $14,200
22%$54,201 to $86,350$6,220 plus 22% of the amount over $54,200
24%$86,351 to $164,900$13,293 plus 24% of the amount over $86,350
32%$164,901 to $209,400$32,145 plus 32% of the amount over $164,900
35%$209,401 to $523,600$46,385 plus 35% of the amount over $209,400
37%$523,601 or more$156,355 plus 37% of the amount over $523,600
Head of Household 2022

for filing due April 2023

Tax rateTaxable income bracketTaxes owed
10%$0 to $14,65010% of taxable income
12%$14,651 to $55,900$1,465 plus 12% of the amount over $14,650
22%$55,901 to $89,050$6,415 plus 22% of the amount over $55,900
24%$89,051 to $170,050$13,708 plus 24% of the amount over $89,050
32%$170,051 to $215,950$33,148 plus 32% of the amount over $170,050
35%$215,951 to $539,900$47,836 plus 35% of the amount over $215,950
37%$539,901 or more$161,218.50 plus 37% of the amount over $539,900

Tax Rates for 2021 and 2022

Alternative Minimum Tax (AMT)
Alternative minimum tax (AMT)20212022
Maximum AMT exemption amount$114,600 (MFJ), $73,600 (Single/HOH), $57,300 (MFS)$118,100 (MFJ), $75,900 (Single/HOH), $59,050 (MFS)
Exemption phaseout threshold$1,047,200 (MFJ), $523,600 (Single/HOH/MFS)$1,079,800 (MFJ), $539,900 (Single/HOH/MFS)
26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount)$199,900 (MFJ/Single/HOH), $99,950 (MFS)206,100 (MFJ/Single/HOH), $103,050 (MFS)
Standard Deductions
Standard deduction20212022
Standard deduction amount$25,100 (MFJ), $18,800 (HOH), $12,550 (Single), $12,550 (MFS)$25,900 (MFJ), $19,400 (HOH), $12,950 (Single), $12,950 (MFS)
Standard deduction for dependentCan't exceed the greater of $1,100 or $350 + earned incomeCan't exceed the greater of $1,150 or $400 + earned income
Additional deduction for aged/blind$1,700 (Single/HOH), $1,350 (MFJ/MFS)$1,750 (Single/HOH), $1,400 (MFJ/MFS)
Top Tax Brackets
Top tax brackets20212022
Single37% of taxable income exceeding $523,600 + $157,804.2537% of taxable income exceeding $539,900 + $162,718
MFJ37% of taxable income exceeding $628,300 + $168,993.5037% of taxable income exceeding $647,850 + $174,253.50
MFS37% of taxable income exceeding $314,150 + $84,496.7537% of taxable income exceeding $323,925 + $87,126.75
HOH37% of taxable income exceeding $523,600 + $156,35537% of taxable income exceeding $539,900 + $161,218.50
Top Capital Gain Tax Rate (20%) Thresholds
Top capital gain tax rate (20%) thresholds20212022
Single$445,850$459,750
MFJ$501,600$517,200
MFS$250,800$258,600
HOH$473,750$488,500
Unearned Income Medicare Contribution Tax (Net Investment Income Tax)
Unearned income Medicare contribution tax (Net investment income tax)20212022
Amount of tax3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:
Individuals$200,000$200,000
Married filing jointly$250,000$250,000
Married filing separately$125,000$125,000
Standard Mileage Rates
Standard mileage rates20212022
Use of auto for business purposes (cents per mile)$0.56$0.585
Use of auto for medical purposes (cents per mile)$0.16$0.18
Use of auto for moving purposes (cents per mile)$0.16$0.18
Use of auto for charitable purposes (cents per mile)$0.14$0.14
Qualified Charitable Distributions (QCDs)

Qualified charitable distributions (QCDs) are distributions made directly from an IRA to a qualified charity. Such distributions may be excluded from income and count toward satisfying any required minimum distributions (RMDs) you would otherwise have to receive from your IRA. Individuals age 70½ and older can make up to $100,000 in QCDs per year.

Registered Representative offering securities and advisory services through Independent Financial Group, LLC (IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC. Financial 1 Wealth Management Group and IFG are unaffiliated entities.

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