(Note that the tax brackets for your state's income tax could contain a marriage penalty.) Capital Gains Tax Rates For 2021 returns, the marriage penalty was possible only for married couples with a combined taxable income above $628,300. As a result, only couples with a combined taxable income over $647,850 are at risk when filing their 2022 federal tax return. But now, as you can see in the tables above, only the top tax bracket contains the marriage penalty trap. SEE MORE Getting Married? Let's Talk Taxesīefore the 2017 tax reform law, this happened in the four highest tax brackets. The penalty is triggered when, for any given rate, the minimum taxable income for the joint filers' tax bracket is less than twice the minimum amount for the single filers' bracket. The difference between bracket ranges sometimes creates a ' marriage penalty.' This tax-law twist makes certain married couples filing a joint return pay more tax than they would if they were single (typically, where the spouses' incomes are similar). That's a lot of money, but it's still $37,045 less than if the 37% rate were applied as a flat rate on the entire $1 million (which would result in a $370,000 tax bill). So, for example, the tax on $1 million for a single person in 2022 is $332,955. The rest is taxed at lower rates as described above. (We can all dream, right?) If you're single, only your 2022 income over $539,900 is taxed at the top rate (37%).

(That's $6,164 less than if a flat 24% rate was applied to the entire $100,000.) When you add it all up, your total 2022 tax is only $17,836. That leaves only $10,925 of your taxable income (the amount over $89,075) that is taxed at the 24% rate, which comes to an additional $2,622 of tax. After that, the next $47,300 of your income (from $41,776 to $89,075) is taxed at the 22% rate for $10,406 of tax. The next $31,500 of income (the amount from $10,276 to $41,775) is taxed at the 12% rate for an additional $3,780 of tax. Again, assuming you're single with $100,000 taxable income in 2022, the first $10,275 of your income is taxed at the 10% rate for $1,028 of tax. SEE MORE Tax Changes and Key Amounts for the 2022 Tax Year The rest of it is taxed at the 10%, 12%, and 22% rates. That's because, using marginal tax rates, only a portion of your income is taxed at the 24% rate. Since $100,000 is in the 24% bracket for singles, will your 2022 tax bill simply a flat 24% of $100,000 – or $24,000? No! Your tax is actually less than that amount. Suppose you're single and end up with $100,000 of taxable income in 2022. When you're working on your 2022 federal income tax return next year, here are the tax brackets and rates you'll need: 2022 Tax Brackets for Single Filers and Married Couples Filing Jointly Now, let's get to the actual tax brackets for 20. (For 2021, the 22% tax bracket for singles went from $40,526 to $86,375, while the same rate applied to head-of-household filers with taxable income from $54,201 to $86,350.) So, that's something else to keep in mind when you're filing a return or planning to reduce a future tax bill. However, for head-of-household filers, it goes from $55,901 to $89,050. For example, for single filers, the 22% tax bracket for the 2022 tax year starts at $41,776 and ends at $89,075. The 20 tax bracket ranges also differ depending on your filing status. SEE MORE What's the Standard Deduction for 2022 vs. That means you could wind up in a different tax bracket when you file your 2022 federal income tax return than the bracket you were in before – which also means you could pay a different tax rate on some of your income. However, as they are every year, the 2022 tax brackets were adjusted to account for inflation. When it comes to federal income tax rates and brackets, the tax rates themselves didn't change from 2021 to 2022. For most Americans, that's their return for the 2022 tax year - which will be due on Ap(or October 16, 2023, if you request an extension next year).

Smart taxpayers are planning ahead and already thinking about their next federal income tax return.

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Us federal tax brackets 2021