The Reference Section

A collection of wealth improvement articles

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.

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: business56¢ per mile58.5¢ per mile+2.5¢
Standard mileage rate: medical/moving16¢ per mile18¢ per mile+2.0¢
Mileage rate: charitable activity14¢ per mile14¢ per milenc
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 ageNo limitNo limitnc
Top estate tax rate40%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$6,000nc
- IRA for those 50 and over$7,000$7,000nc
- 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$1,000nc
"Kiddie tax" threshold$2,200$2,300+$100
"Nanny tax" threshold$2,200$2,400+$200
Education savings account contribution (Coverdell)$2,000$2,000nc
American opportunity (Hope) credit limit$2,500$2,500nc
Education loan interest deduction$2,500$2,500nc
Personal exemption (suspended through 2025)SuspendedSuspendedna
FICA & self-employment tax

Taxable wages for Social Security/MedicareUp to $142,800Up to $147,000+$4,200
Social Security/Medicare tax rate

- Employees7.65%7.65%nc
- Employers7.65%7.65%nc
- Self-employed15.3%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