Best Financial Advisors in Atlanta, GA

Individual Tax Changes The tax rate structure, which ranges from 10 to 37 percent, remains similar to 2021; however, the tax-bracket thresholds increase for each filing status. Standard deductions also rise, and as a reminder, personal exemptions have been eliminated through tax year 2025. Standard Deduction The standard deduction increases to $12,950 for individuals (up from $12,550 in 2021) and to $25,900 for married couples (up from $25,100 in 2021). Alternative Minimum Tax (AMT) AMT exemption amounts saw an increase to $75,900 for individuals (up from $73,600 in 2021) and $118,100 for married couples filing jointly (up from $114,600 in 2021). "Kiddie Tax" The "kiddie tax" is $1,150. Estate and Gift Taxes The maximum tax rate remains at 40 percent. The annual exclusion for gifts increases to $16,000. Adoption Credit In 2022, a nonrefundable credit of up to $14,890 is available for qualified adoption expenses for each eligible child. Earned Income Tax Credit The maximum Earned Income Tax Credit (EITC) for low, and moderate-income workers and working families increases to $6,935 (up from $6,728 in 2021). Child Tax Credit For tax years 2018 through 2025, the child tax credit is $2,000 per child. Child and Dependent Care Tax Credit You may qualify for a credit of up to $1,050 or 35 percent of $3,000 of eligible expenses in 2022 Don't hesitate to call if you have any questions or want to get a head start on tax planning for the year ahead.