Tax brackets will be higher in 2022 because of inflation. As compared to 2021 filing season, most tax bracket cut-off points have increased about 3%. These changes will apply to the tax returns that are filed in 2023 so they will not impact the upcoming tax filing season.
It is expected that the standard deduction will also increase. For individuals it will increase to $12,950 and for married filing jointly, it’ll increase to $25,900.
Other tax changes will also be made, such as the foreign earned income exclusion, the child tax credit, qualified adoption expenses and many more.
