Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 678 other followers

  • Blog Stats

    • 307,323 hits
  • Posts By Day

    November 2021
    M T W T F S S
    1234567
    891011121314
    15161718192021
    22232425262728
    2930  
  • Subscribe

  • Special Pages

Archive for November 10th, 2021

2022 IRS Inflation Adjustments

Posted by taxguru on November 10, 2021

IRS has officially calculated the various increases for 2022 that are required to be adjusted annually.

IRS News Release with some of the “most popular” changes

Revenue Procedure 2021-45 with all of the details (29 Page PDF)

Not mentioned in either of the above referenced documents is the fact that there should be a huge asterisk with the disclaimer that all of these figures are subject to changes at the whim of the rulers currently in power.  With all of the threats to retroactively increase all tax rates coming from DC, we can only hope that the IRS assumptions of 2022 rates will actually survive.

One noteworthy change for 2022 is the annual Gift Tax exclusion, which can only be increased in $1,000 increments after multiple years of inflation.  For 2022, it will be raised from the current $15,000 per donor (giver) per donee (recipient) to $16,000.  Many people design their long-term gifting strategies based on these annual exclusion amounts.

[Update 11-30-2021]: The good folks at TheTaxBook have produced this handy one page summary of the most popular inflation adjustment amounts for 2020, 2021 and 2022.

Posted in inflation, IRS | Comments Off on 2022 IRS Inflation Adjustments