IRS Tax Refunds 2022: What will the standard deduction be?

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The annual inflation adjustments have been announced by the Internal Revenue Service (IRS) for the tax year 2022, with most numbers up more than in the last few years due to higher inflation.

The figures in this article relate to the tax year that begins on January 1, 2022, so these are the numbers you will use in your 2022 tax return in 2023.

Assuming you are not expecting any major changes to your income or in your personal life, such as starting a new business or getting married, you should be able to calculate your estimated 2022 federal tax liability.

However, there is one notable caveat when it comes to these 2022 numbers: the Democrats are looking to pass the $1.85 trillion Build Back Better Act, with the latest legislative text on November 3 calling for income tax surcharges on the rich, as well as an $80,000 cap for state and local tax deductions, which is up from $10,000.

Standard deduction 2022

There will be an increase to the standard deduction amount, as it rises to $12,950 for individuals and married couples filing separately, $19,400 for heads of household and $25,900 for married couples filing jointly and surviving spouses.

There is an additional standard deduction amount for elderly citizens and the blind in 2022, with this being $1,400. Although, this increases to $1,750 for unmarried elderly/blind taxpayers.

An individual who can be claimed as a dependent by another taxpayer in 2022 cannot go above the greater of $1,150 or the sum of $400 and the earned income of that individual. This often applies to the so-called Kiddie Tax, which relates to unearned income for children under the age of 19 and college students under the age of 24, so this is money they have that is not from wages and salary.

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