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2022 Tax Brackets: How Record-Breaking Inflation Will Affect Your Taxes

The changes affect the tax returns most Americans will submit in spring 2023.



This article was originally published by Money

The U.S. is experiencing its highest inflation in 30 years, and the IRS is taking notice.

The federal agency announced Wednesday that it’s adjusting the standard deduction, income tax rates and dozens of other tax provisions for 2022.

Because of the way tax filing years work, the changes affect the tax returns most Americans will submit in spring 2023. (The IRS issues these adjustments every fall, so the announcement is normal even though current inflation rates are certainly not.)

For 2022, the standard deduction will be $12,950 for single filers, an increase of $400 from 2021. It’s likely this decision will affect you: Ever since the Tax Cuts and Jobs Act passed in 2017, an estimated 90% of households take the standard deduction instead of itemizing their taxes.

But that jump doesn’t apply across the board. The 2022 standard deduction for heads of household — unmarried taxpayers with dependents — will be $19,400, a $600 hike, and $25,900 for married couples filing jointly, an $800 boost.

Federal income tax brackets and rates for 2022

The IRS also tweaked the marginal tax rates, often referred to as tax brackets, for the year ahead.

There are still seven brackets broken up by income. But the lowest tax bracket now includes single filers who earn up to $10,275 as well as joint filers who earn up to $20,550. They’ll be taxed at 10%.

On the other end of the spectrum, the top tax rate is 37% for single filers who make over $539,900 and joint filers who make over $647,850.

How much to tax the highest-paid Americans has been the subject of much discussion since President Joe Biden proposed raising their taxes in his American Families Plan earlier this year. Biden pushed to increase the top individual income tax rate to 39.6%, the level at which it hovered before former President Donald Trump signed the Tax Cuts and Jobs Act, but hasn’t secured congressional approval. When the TCJA provision sunsets in 2026, the rate will return to 39.6%.

You can see a full breakdown of the tax brackets for 2022 below. Head to the IRS website for more details on inflation adjustments.

2022 Tax Brackets
2022 tax rate single filers married filing jointly
1 10% $0 to $10,275 $0 to $20,550
2 12% $10,275 to $41,775 $20,550 to $83,550
3 22% $41,775 to $89,075 $83,550 to $178,150
4 24% $89,075 to $170,050 $178,150 to $340,100
5 32% $170,050 to $215,950 $340,100 to $431,900
6 35% $215,950 to $539,900 $431,900 to $647,850
7 37% over $539,900 over $647,850
Source: IRS

More from Money:

The Sneaky Way Inflation Can Cause You to Pay Higher Taxes

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Author: Author


Mish: Fauci And Biden Are Medical Hypocrites & A Political Disgrace

Mish: Fauci And Biden Are Medical Hypocrites & A Political Disgrace

Authored by Mike Shedlock via,

Among the key reasons…

Mish: Fauci And Biden Are Medical Hypocrites & A Political Disgrace

Authored by Mike Shedlock via,

Among the key reasons for mistrust of vaccinations are outright lies and excuses by Biden and his alleged experts coupled with medical and political hypocrisy…

No Tests for Illegal Immigrants 

On September 20, the White House Defends Not Requiring Negative COVID Tests From Illegal Migrants.

The rationale is an amazing political lie. White House Press Secretary Jen Psaki said the refugees are “not intending to stay here for a lengthy period of time.”


Reporters pressed Psaki as to why there are so many steps pertaining to COVID-19 when flying into the country, such as providing vaccination proof or a negative COVID-19 test, but seemingly none for those who walk across the border. 

The intention is for them to be quarantined. That is our process, they’re not intending to stay here for a lengthy period of time, I don’t think it’s the same thing. It’s not the same thing,” responded Psaki.

Mandatory Vaccinations or Tests for US Citizens 

On November 4, the White House Fact Sheet announced Details of Two Major Vaccination Policies

First, the Department of Labor’s Occupational Safety and Health Administration (OSHA) is announcing the details of a requirement for employers with 100 or more employees to ensure each of their workers is fully vaccinated or tests for COVID-19 on at least a weekly basis. The OSHA rule will also require that these employers provide paid-time for employees to get vaccinated, and ensure all unvaccinated workers wear a face mask in the workplace. OSHA has a strong 50-year record of requiring employers to take common sense actions to prevent workers from getting sick or injured on the job. This rule will cover 84 million employees.

Second, the Centers for Medicare & Medicaid Services (CMS) at the Department of Health and Human Services is announcing the details of its requirement that health care workers at facilities participating in Medicare and Medicaid are fully vaccinated. The rule applies to more than 17 million workers at approximately 76,000 health care facilities, including hospitals and long-term care facilities.

Three Point Synopsis 

  1. There are no tests or vaccination requirements for illegal immigrants because “they’re not intending to stay here for a lengthy period of time.”

  2. 84 million US citizens must be fully vaccinated or have weekly tests for COVID-19.

  3. Point 2 is selective. It only applies to businesses of 100 or more people. 

The 5th circuit appeals court blasted the policy for numerous reasons. 

Summation of Key Terms Used by the Court

  • “Fatally flawed”

  • “One-size-fits-all sledgehammer”

  • The “one-size-fits-all Mandate” is simultaneously overinclusive and “underinclusive”

  • “Immense complexity”

  • “It regulates noneconomic inactivity that falls squarely within the States’ police power”

  • “True purpose is not to enhance workplace safety, but instead to ramp up vaccine uptake by any means necessary.”

Biden Doubles Down on Vaccine Mandate With Another Circuit Court

Did that stop Biden? 

Of course not. Due to a number of state challenges to the policy the cases were consolidated and moved to the 6th circuit court of appeals. 

Biden could have and should have backed down. Instead, Biden Doubles Down on Vaccine Mandate With Another Circuit Court.

Omicron Will Spread Anyway

Please note that when Asked about border COVID cases, Fauci says Omicron likely to spread anyway

Asked about concerns of Omicron spread amid a slew of COVID-19 cases among migrants at the southern border. Dr. Anthony Fauci said Friday that the variant was likely to spread in the country “no matter what.”

Fauci, President Biden’s chief medical adviser, was grilled by Fox News host Neil Cavuto about reports that said 18 percent of migrant families and 20 percent of unaccompanied minors tested positive for the coronavirus.

“I think given what we know about the transmissibility and a likely transmissibility advantage of Omicron … once it gets in there, it will likely, under the radar screen, be spreading no matter what you do to keep people out or not,” Fauci said during the rare appearance on the cable news channel.

Cavuto estimated that the percent of those infected could mean about 4,000 people infected in encampments if the overall number of migrants at the border crossing is about 20,000 people. If those numbers are the case, the host argued, wouldn’t that undo any efforts to curb the spread of the virus at US airports?

Fauci said he believed that would be a “moot point” as more cases are confirmed. There are now 13 states that have confirmed cases of the Omicron variant.

“You know, Neil, I don’t have an easy answer for that,” Fauci said. “I mean obviously Title 42 is still operable at the border, trying to keep people who should not come in into the country. There is testing that is done — I’m certain it’s not as extensive as we would like to see — but I have to admit, Neil, I don’t have an easy answer that’s a very difficult problem.”

Africa Travel Ban 

Also note that Fauci says Biden travel ban on African countries should be rolled back ‘as quickly as possible’

“We did not know it was in other countries at the time of the ban. It looked like it was just in South Africa,” Fauci said. “But right now, you’re right, it is out there, so it’s going to spread no matter what. So that’s the reason why I would feel that, hopefully, we can pull back on that ban as quickly as possible.”

Still, Fauci maintained that if a ban had not been instituted, people would have been upset and “crucified” the administration for its inaction.

In less than a week, Fauci was against the ban, promoted the ban, and is now against the ban, all for political, not medical reasons.

About Title 42

Bizarro Policy Problem

Fauci is now leaning on Title 42, but Biden vowed to kill that permanently. It’s in play because the Supreme court reinstated it over Biden’s wishes.

And despite the Supreme Court having the final say, Biden still proposes fighting the ruling.

For discussion, please consider Biden Restarts Trump’s Stay in Mexico Program Despite Calling it Dangerous and Inhumane

This conflicting hypocritical madness is on top of admitted Fauci lies where he flip flopped on the use of masks and travel bans.

Is it any wonder mistrust is high?

In a 2020 campaign pledge, Biden promised the nation he would get Covid-19 under control. Yet, despite a trillion in fiscal stimulus (creating an inflationary labor shortage in its wake), mask mandates, vaccine mandates and more restrictions with every surge, here we are.

Yes, Dr. Fauci it’s “a very difficult problem” compounded by lies, ineptitude, conflicting statements and “one-size-fits-all sledgehammer” Bizarro World policies some of which are unconstitutional.

*  *  *

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Tyler Durden
Mon, 12/06/2021 – 17:00

Author: Tyler Durden

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Bitcoin’s Dip Provides an Opportunity for Value Seekers

Bitcoin (CCC:BTC-USD) dipped below $50,000 per token during the Dec. 4 weekend. It is also now trading below $1 trillion in market capitalization. This…

Bitcoin (CCC:BTC-USD) dipped below $50,000 per token during the Dec. 4 weekend. It is also now trading below $1 trillion in market capitalization. This provides an opportunity for value seekers. As the cryptocurrency experiences weaknesses near the end of the year, expect to see sharp moves either way.

Source: Shutterstock

The most likely reason for the weaknesses is what traders call “consolidation,” according to Coin Telegraph magazine. Some sellers, likely due to tax reasons, are forced to sell before the end of the year. They either want to harvest profits to use against other short-term or long-term losses or vice versa.

As it stands, Bitcoin is now well off of its three-month high of $68,492 on Nov. 11. As of late Dec. 5, it was trading at $49,141. That represents a drop of 28.3% from its highs.

And Bitcoin is not the only crypto to take a hit recently. Ethereum (CCC:ETH-USD), the second-largest cryptocurrency is down as well. Ethereum recently peaked at $4,765 on Dec. 1 and was down 12.8% to $4,155 as of late Dec. 5.

What Happened to BTC Last Weekend

One trader called consolidation “a slow grind-up.” By that, he meant that various prior sticky points would have to be recaptured. This includes the $50,000 price mark, the trillion-dollar market cap (at just above $53,000) and various other previous highwater marks.

Decrypt called the drops on Friday, Dec. 4 and Sat., Dec. 5, a “crypto market crash.” At one point, the magazine pointed out, Bitcoin was down more than 18% in one 24-hour period and ETH tokens were down 15%.

The magazine blamed the omicron variant of Covid-19 and Nasdaq weakness. But the most likely reason is simply year-end tax selling. Those with profits in Bitcoin may want to cover losses from other crypto or stock trading, and those with losses in Bitcoin may want to reduce profits elsewhere. This is not wholly uncommon in the world of stocks, especially during the last week of November and the first week of December.

The reason is simple. Those with losses know they cannot rebuy their position for at least 31 days after the sales. So, just in case a rebound occurs early in the new year, they need to make their sales during the first week or so of December. This occurs very often, no matter the reason that sparked the downturn.

This explains the main reason why Bitcoin and other major cryptos have moved “in tandem,” as Decrypt magazine puts it, with the stock market. It has to do with the tax-related motivations of sellers more than anything else.

Where This Leaves Investors in Bitcoin

The best thing most investors can do with this situation is to be patient and try and average into your position. If you don’t already have a Bitcoin stake, it is probably a useful opportunity to begin accumulating one.

For one, even if the price of BTC keeps falling, at least you have the advantage of buying in at a point where the price is falling.

The math of this situation is very appealing. Let’s say you buy in today and the price falls another 25%. If you then buy in another position of equal dollar value, you gain a leverage effect.

For example, if the BTC price falls 25% from, say, $49,000 to $36,750, and you buy an equal or larger position at this lower price, you can pick up leverage. That is because if the price subsequently moves from $36,750 to $49,000, you gain 33.33% in value. This is a greater gain than the 25% loss. So an equal or larger bet at the lower price helps you to more than cover the loss.

This is why many value investors like to take an initial toe-hold stake in a falling security. They then take successively larger positions as the security drops. This is what many investors might end up doing now while Bitcoin and Ethereum prices are weak.

On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Mark Hake writes about personal finance on and runs the Total Yield Value Guide which you can review here.

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The post Bitcoin’s Dip Provides an Opportunity for Value Seekers appeared first on InvestorPlace.

Author: Mark R. Hake

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US Close: Stocks roar as Omicron fears ease, Oil rallies, Nat Gas tumbles, Gold struggles, Bitcoin crash aftermath

US stocks are quickly getting their groove back as Omicron worries ease as the early COVID data shows cases remain mild in nature.  Even on a day when…


US stocks are quickly getting their groove back as Omicron worries ease as the early COVID data shows cases remain mild in nature.  Even on a day when a cruise ship reports at least 17 passengers tested positive for COVID, cruise ship stocks are soaring higher.  The US economy with the help of rising vaccination totals will continue to reopen as people learn to live with the COVID.  


Crude prices rallied on easing fears over the Omicron variant, a surprise RRR cut from China boosted risk appetite, and on foreign demand for the US strategic oil sale. It appears the major oil price selloff is over as the mid-$60s has provided strong support and has been accompanied with a steady reminder that the oil market will remain vulnerable to some shortfalls over the next couple of years. COVID and the ESG movement has accelerated that lack of investment in new wells and that should keep oil prices from dropping below the $60 level going forward.

Earlier crude prices were boosted on optimism that demand must be improving since Saudi Arabia raised prices. Over the weekend, crude was not dragged down after reports that a Norwegian cruise ship had a COVID outbreak with at least 17 cases. The entire cruise line industry was battered when COVID first arrived, but optimism is growing that due the vaccine requirements we are getting closer to learning how to live with the virus. Shares of Royal Caribbean and Norwegian Cruise Line are higher by at least 9%, prompting optimism that large parts of the economy will not need to shutdown over this next wave given that over 70% of the population is vaccinated. 

WTI crude tested the $70 level and the 200-day SMA but has pared some of its gains. Crude’s next big move might be dictated by the dollar and might not have a clear trajectory until Friday’s inflation report. 

Natural Gas

Warm weather is sending natural gas prices sharply lower. I quickly had to go back to the house after quickly mistakenly having my toddlers put on their winter coats this morning. The supply situation across Europe and Asia has the natural gas markets very vulnerable to higher prices, but the short-term demand outlook is not warranting anything but softer prices.  Natural gas should find some support well ahead of the $3 handle. 


Gold prices are struggling as demand for safe-havens ease as early data suggest Omicron cases remain mild in nature. Gold was unable to muster up much of a rally after the PBOC cut the cash reserve requirement ratio as their debt-loaded property market continued its downward spiral.

Gold will face its true test later this week when a hot inflation report could seal the deal for an aggressively faster taper by the Fed. Treasury yields got their momentum back as optimism grows the Omicron variant won’t lead to widespread lockdowns as early data suggests cases remain mild in nature. 

Gold may consolidate between the $1750 and $1800 trading range.


Too often I write about unexpected Bitcoin price plunges, but that seems to be the norm. Confidence that the crypto selling pressure is over is far from over and that is why there are some fading the Saturday rebound. This unexpected crypto crash does not mean the end of Bitcoin or bursting of what some call the biggest bubble ever. Excessive margin trading and a complacently bullish market is the culprit that let Bitcoin end up being vulnerable to what was almost a 40% drop from the record high of just a month ago. 

The entire crypto space is evolving and the focus for some is shifting from the good old store of value trade to which coin will be best for defi, the metaverse, or even NFTs.   

Ethereum is becoming the favorite holding for many crypto investors and that could gain momentum in the New Year. 

Author: Ed Moya

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