Broker Check

Income Tax Key Numbers

January 04, 2023
Share |

Changes That May Affect Your Tax Refund

No additional stimulus payments.  Unlike 2020 and 2021, there were no new stimulus payments for 2022, so taxpayers should not expect to get an additional payment in their 2023 tax refund.

Some tax credits return to 2019 levels.  This means that some taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), the Earned Income Tax Credit (EITC) and the Child and Dependent Care Credit will revert to pre-COVID levels.  

  • Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
  • For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 for the 2022 tax year.
  • The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.

No above-the-line charitable deductions. During COVID, taxpayers were able to take up to a $600 charitable donation tax deduction on their tax returns. However, for tax year 2022, taxpayers who don’t itemize and who take the standard deduction, won’t be able to deduct their charitable contributions.

More people may be eligible for the Premium Tax Credit. For tax year 2022, taxpayers may qualify for temporarily expanded eligibility for the premium tax credit. Remember that simply meeting the income requirements does not mean you're eligible for the premium tax credit. You must also meet the other eligibility criteria.

Eligibility rules changed to claim a tax credit for clean vehicles. Review the changes under the Inflation Reduction Act of 2022 to qualify for a Clean Vehicle Credit.

 Key Tax Numbers

Standard Deduction 

2021

2022

2023

MFJ

$25,100

$25,900

$27,700

MFS & Single

$12,550

$12,950

$13,850

HOH

$18,800

$19,400

$20,800

 

 

 

 

Top capital gain tax rate (20%) thresholds

2021

2022

2023

Single

$445,850

$459,750

$492,300

MFJ

$501,600

$517,200

$553,800

MFS

$250,800

$258,600

$276,900

HOH

$473,750

$488,500

$523,050

 

 

 

 

Unearned income Medicare contribution tax (Net investment income tax)

2021

2022

2023

Amount of tax

3.80%

3.80%

3.80%

Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:

 

Individuals

$200,000

$200,000

$200,000

Married filing jointly

$250,000

$250,000

$250,000

Married filing separately

$125,000

$125,000

$125,000

 

 

 

 

Standard mileage rates (cents per mile)

2021

2022

2023

Use of auto for business purposes 

$0.56

$0.585 or $0.625*

TBD

Use of auto for medical purposes

$0.16

$0.18 or $0.22*

TBD

Use of auto for charitable purposes

$0.14

$0.14

$0.14

* The IRS raised mileage rates for the final 6 months of 2022, so the higher rates noted above are effective as of July 1, 2022.

 

IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.