Important Tax Figures for 2022

William H. Shawn

Co-Managing Partner, ShawnCoulson

The following table provides some important federal tax information for 2022, as compared with 2021. Some of the dollar amounts are unchanged and some changed only slightly due to inflation.

Social Security/ Medicare20222021
Social Security Tax Wage Base$147,000$142,800
Medicare Tax Wage BaseNo limitNo limit
Employee portion of Social Security6.2%6.2%
Employee portion of Medicare1.45%1.45%
Individual Retirement Accounts20222021
Roth IRA Individual, up to 100% of earned income$6,000$6,000
Traditional IRA Individual, up to 100% of earned Income$6,000$6,000
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older$1,000$1,000
Qualified Plan Limits20222021
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)$61,000$58,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))$245,000$230,000
Maximum compensation used to determine contributions$305,000$290,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))$20,500$19,500
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older$6,500$6,500
SIMPLE deferrals (Section 408(p)(2)(A))$14,000$13,500
SIMPLE additional “catch-up” contributions for employees age 50 and older$3,000$3,000
Compensation defining highly compensated employee (Section 414(q)(1)(B))$135,000$130,000
Compensation defining key employee (officer)$200,000$185,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))$650$650
Driving Deductions20222021
Business mileage, per mile58.5 cents56 cents
Charitable mileage, per mile14 cents14 cents
Medical and moving, per mile18 cents16 cents
Business Equipment20222021
Maximum Section 179 deduction$1.08 million$1.05 million
Phase out for Section 179$2.7
million
$2.62 million
Transportation Fringe Benefit Exclusion20222021
Monthly commuter highway vehicle and transit pass$280$270
Monthly qualified parking$280$270
Standard Deduction20222021
Married filing jointly$25,900$25,100
Single (and married filing separately)$12,950$12,550
Heads of Household$19,400$18,800
Domestic Employees20222021
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.$2,400$2,300
Business Meals20222021
Deduction for eligible business-related food and beverage expenses100%*100%*
Estate Tax20222021
Federal estate tax exemption$12.06 million$11.7 million
Maximum estate tax rate40%40%
Annual Gift Exclusion20222021
Amount you can give each recipient$16,000$15,000

* Provided by restaurants. This is part of the Consolidated Appropriations Act, signed into law on December 27, 2020. The 100% deduction is scheduled to return to 50% in 2023, unless Congress acts to extend it.