The IRS announced 2022 cost-of-living adjustments for the following:
Retirement Account Contributions
- 401(k) plans are increased to $20,500 (up from $19,500 in 2020/2021)
- Catch up contributions are unchanged at $6,500 for those age 50 and older
- Annual contributions to an IRA remain unchanged at $6,000 (additional $1,000 for eligible catch-up contributions), but income limits are increased to:
- Roth IRA income phase-outs for contributions are increased to:
- Single and Head of Household: $129,000 to $144,000
- Married Filing Jointly: $204,000 to $214,000
- Traditional IRA income phase-outs (for the individual not covered by a workplace retirement plan) for contributions are increased to:
- Single and Head of Household: $129,000 to $144,000
- Married Filing Jointly: $204,000 to $214,000
- Traditional IRA income phase-outs (for the individuals that are covered by a workplace retirement plan) for contributions are increased to:
- Single and Head of Household: $68,000 to $78,000
- Married Filing Jointly: $109,000 to $129,000
- Maximum deductible SEP contribution: $61,000
- Roth IRA income phase-outs for contributions are increased to:
Miscellaneous
- Gift Tax Exclusion โ amount is increased to $16,000 per person in 2022
- Consider super funding a ยง529 Plan โ lump 5 years of contributions at once ($80,000)
- Estate โ 2022 unified exclusion amount is $12.06 million.
- Health Savings Accounts Contribution Limits:
- Family: $7,300
- Self-only: $3,650
- Catch-up: $1,000 for taxpayers over 55 years old
- Business Mileage Rate increased to 58.5 cents per mile for 2022
Tax Credits
- Solar Credits (REEP)
- Property placed in service between 1/1/2021-12/31/2022 = 26%
- Property placed in service between 1/1/2023-12/31/2023 = 22%
- After 2023 = 0%
- Business Meals
- For business meals in 2021 and 2022 at a full-service restaurant (either dine in or take out) the deduction is 100%
- Child Tax Credits
- Credits revert to pre-2021 amounts of $2,000 per eligible child
- Child and Dependent Care Credit
- Dependent Care Benefit maximum contribution for 2022: $5,000
- Qualified Plug in electric vehicle credit up to $7,500
- Confirm the credit available per manufacturer here
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