New Changes to 2022 Tax Laws

The IRS announced a number of new changes that will impact everyone.

Due to recent inflation stemming from supply-chain issues, labor shortages and other economic issues, individuals have reduced purchasing power.Beginning in 2022, the standard deduction for individuals and married-filing jointly has increased $400 and $500, respectively.

Other key changes impact the amount you can put toward your retirement, including:

• A $1,000 increase in contribution limits to the employer sponsored retirement plans

• A $3,000 increase in contribution limits to a defined contribution plan (business owners!)

• A $6,000 increase in the phase-out floor for Roth-IRA contributions

The last update that will impact the majority of American's is a $1,000 increase in the annual gift exclusion to $16,000. Gifts up to this amount annually do not need to be reported with gift tax paid, and may be exlcuded from the life-time estate limits.