Tax Facts – 2 Year Comparison
Here’s a quick review of some of the tax changes you’ll see from 2021 to 2022 as a result of inflation adjustments and new tax laws.
| Provision | 2021 | 2022 | +/- |
| Business equipment Sec. 179 expensing deduction | $1,050,000 | $1,080,000 | +$30,000 |
| Total purchase limit for full Sec. 179 expensing deduction | $2,620,000 | $2,700,000 | +$80,000 |
| Standard mileage rate: business | 56¢ per mile | 58.5¢ per mile | +2.5¢ |
| Standard mileage rate: medical/moving | 16¢ per mile | 18¢ per mile | +2.0¢ |
| Mileage rate: charitable activity | 14¢ per mile | 14¢ per mile | nc |
| Maximum wages subject to social security tax | $142,800 | $147,000 | +$4,200 |
| Social security earnings limit | |||
| – Under full retirement age | $18,960 | $19,560 | +$600 |
| – Full retirement age | No limit | No limit | nc |
| Top estate tax rate | 40% | 40% | nc |
| Estate tax exemption | $11,700,000 | $12,600,000 | +$900,000 |
| Annual gift tax exclusion (per donee) | $15,000 | $16,000 | +$1,000 |
| Alternative minimum tax exemption | |||
| – Single | $73,600 | $75,900 | +$2,300 |
| – Married, joint | $114,600 | $118,100 | +$3,500 |
| – Married, separate | $57,300 | $59,050 | +$1,750 |
| Maximum retirement plan contributions | |||
| – IRA for those under age 50 | $6,000 | $6,000 | nc |
| – IRA for those 50 and over | $7,000 | $7,000 | nc |
| – SIMPLE plan for those under age 50 | $13,500 | $14,000 | +$500 |
| – SIMPLE plan for those 50 and over | $16,500 | $17,000 | +$500 |
| – 401(k) plan for those under age 50 | $19,500 | $20,500 | +$1.000 |
| – 401(k) plan for those 50 and over | $26,000 | $27,000 | +$1.000 |
| HSA contribution limits | |||
| – Self only | $3,600 | $3,650 | +$50 |
| – Family | $7,200 | $7,300 | +$100 |
| – Additional for 55 & older | $1,000 | $1,000 | nc |
| “Kiddie tax” threshold | $2,200 | $2,300 | +$100 |
| “Nanny tax” threshold | $2,200 | $2,400 | +$200 |
| Education savings account contribution (Coverdell) | $2,000 | $2,000 | nc |
| American opportunity (Hope) credit limit | $2,500 | $2,500 | nc |
| Education loan interest deduction | $2,500 | $2,500 | nc |
| Personal exemption (suspended through 2025) | Suspended | Suspended | na |
| FICA & self-employment tax | |||
| Taxable wages for Social Security/Medicare | Up to $142,800 | Up to $147,000 | +$4,200 |
| Social Security/Medicare tax rate | |||
| – Employees | 7.65% | 7.65% | nc |
| – Employers | 7.65% | 7.65% | nc |
| – Self-employed | 15.3% | 15.3% | nc |
| Standard deduction | |||
| – Single | $12,550 | $12,950 | +$400 |
| – Joint returns & surviving spouses | $25,100 | $25,900 | +$800 |
| – Married filing separately | $12,550 | $12,950 | +$400 |
| – Head of household | $18,800 | $19,400 | +$600 |
| – Additional for elderly or blind (married) | $1,350 | $1,400 | +$50 |
| – Additional for elderly or blind (single) | $1,700 | $1,750 | +$50 |