2022/2023 - TAX FACTS

2022 Social Security: 

Maximum Taxable Wages                                     $147,000

Medicare: 

Maximum Taxable Salary:                                    Unlimited

Do I need to file this year?  (Click here for the filing requirements)

https://www.irs.gov/uac/do-i-need-to-file-a-tax-return

Want some help with determining the proper number of exemptions to claim on your W-4 for wage withholding? 

(click the link for the IRS’s withholding calculator or call our office for assistance)

https://www.irs.gov/individuals/irs-withholding-calculator

Prior-year Safe Harbor for estimated taxes           110% of prior year tax

of higher-income:                                              

Standard mileage rate for business driving           2022 = 62.5   -&-   2023 = 58.5 cents / mile

Unearned income maximum for children              $2,200 (threshold, then sliding scale tax rate)

(Kiddie Tax applies 19 years and younger)          

Maximum capital gains tax rate for taxpayers       0% 

in the 10% - 15% bracket

Maximum capital gains tax rate for taxpayers       15-20% 

above the 15% bracket                                      (high income taxpayers)

Capital gains tax rate on collectibles                    28%

2022 Traditional / Roth IRA Contribution limit       $6,000 or

                                                                        $7,000 (age 50+)

Maximum employee contribution to                     SIMPLE IRA 2022 $14,000

                                                                       ($17,000 age 50 or older)

Maximum employee contribution to SEP IRA        25% of compensation

                                                                        up to $61,000 (2022)

401(k) Maximum employee contribution limit       $20,500 = 2022 / $22,500 = 2023 (under 50)

                                                                        $27,000 = 2022 / $ 30,000 = 2023 (above 50) 

Self-employed health insurance deduction            100%

Federal Estate Tax                                              40% on Estate's excess

                                                                        value of $12.06 million ($24.12 M married)

Annual Exclusion for Gifts                                   $16,000 = 2022   /  $17,000 = 2023

                                                                        (per recipient / per year)

IRC Section 121 Capital Gains exclusion on          up to $500,000 for married couples

of primary residence if house was lived in 24       ($250,000 single)

of the 60 months preceding sale date