Handy Tax Guide

Helpful Info for This Year’s Taxes

Tackle this year’s taxes with our 2022 Handy Tax Guide, prepared by the CPAs of Dugan & Lopatka. This quick, simple reference has helpful info on current tax rates, deductions, depreciation limits, and more.

  • Individual Income Tax Rates
    Married Taxpayers Filing Jointly or Surviving Spouses
    Taxable Income OverBut Not OverIs Taxed At
    $0$20,55010%
    $20,550$83,55012%
    $83,550$178,15022%
    $178,150$340,10024%
    $340,100$431,90032%
    $431,900$647,85035%
    $647,85037%
    Single Taxpayers
    Taxable Income OverBut Not OverIs Taxed At
    $0$10,27510%
    $10,275$41,77512%
    $41,775$89,07522%
    $89,075$170,05024%
    $170,050$215,95032%
    $215,950$539,90035%
    $539,90037%
    Heads of Households
    Taxable Income OverBut Not OverIs Taxed At
    $0$14,65010%
    $14,650$55,90012%
    $55,900$89,05022%
    $89,050$170,05024%
    $170,050$215,95032%
    $215,950$539,90035%
    $539,90037%
    Estates & Trusts
    Taxable Income OverBut Not OverIs Taxed At
    $0$2,75010%
    $2,750$9,85024%
    $9,850$13,45035%
    $13,45037%
    Alternative Minimum Tax
    Tax Rate on AMTI26% up to$206,100
    28% over$206,100
    Exemption AmountPhase-Out Threshold
    Married Filing Jointly$118,100$1,079,800
    Married Filing Separately$59,050$539,900
    All Individual Tax Payers$75,900$539,900
  • Deductions & Exemptions
    Standard Deduction*Elderly or Blind**
    Married Filing Jointly$25,900$1,400
    Single$12,950$1,750
    Head of Household$19,400$1,750
    Married Filing Separately$12,950$1,400
    Dependent of Another$1,150

    *You are allowed to deduct the greater of your standard deduction or your itemized deductions.

    Personal Exemptions - Repealed Deduction Limitations

    Section 199A Qualified Business Income Deduction: 20% of domestic qualified business income (multiple limitations apply).

    Medical & Dental Expenses: Excess over 7.5% AGI.

    State & Local Taxes: $10,000 maximum deduction.

    Mortgage Interest Deduction: Limited to $750,000 of principal for post 12/15/17 acquisition indebtedness.

    Deductions Repealed (as of Jan 1, 2018)
    • Miscellaneous itemized deductions
    • Interest on home equity indebtedness
    • Moving expenses
    Credits

    Tax credits of $2,000 per child and $500 per non-child dependent begin to phase out for taxpayers with modified adjusted gross income exceeding $400,000 for joint and $200,000 for single filers.

  • Estimated Tax Payments

    To avoid possible underpayment penalties, you are generally required to pay in through withholding or estimated tax payments the lesser of:

    1. One hundred percent of prior-year tax liability, (110% if AGI >$150,000) or,
    2. Ninety percent of current-year tax liability.
    2022 Estimated Tax Payments for Individuals are due by:
    • April 15, 2022
    • June 15, 2022
    • September 15, 2022
    • January 16, 2023
  • Net Investment Income Medicare Surtax

    The net investment income surtax on individuals equals 3.8% of the lesser of:

    • Net investment income*, or
    • The excess, if any, of
    • The individual’s modified adjusted gross income, over the threshold amount.
    Filing StatusThreshold Amount
    Married Filing Jointly$250,000
    Married Filing Separately$125,000
    Single, Head of Household$200,000

    *Common types of “net investment income” include interest, dividends, annuities, royalties, rents, net capital gain on investments, passive activities.

  • Capital Gain & Qualified Dividend Tax Rates for Noncorporate Taxpayers
    Single TaxpayerMarried Filing JointlyCapital Gain Tax Rate*Net Investment Income Medicare Surtax**Combined Tax Rate
    $0-$41,675$0-$83,3500%0%0%
    $41,676-$200,000$83,351-250,00015%0%15%
    $200,001-$459,750$250,001-$517,20015%3.8%18.8%
    $459,751$517,20120%3.8%23.8%

    * Short-term capital gains (held less than 12 months) are taxed at the same rate as ordinary income, gains on collectibles (including metals) are taxed at 28%, recapture gains on real estate are taxed at 25%.

    ** The 3.8% Net Investment Income Medicare surtax only applies to “net investment income” as defined in IRC 1411.

  • Estate Tax Rates

    The estate tax and gift tax exemption for 2022 is $12.06 million. The estate and gift tax rate on amounts in excess of $12.06 million is 40%. The estate tax exemption is portable between spouses resulting in a $24.12 million exemption per couple regardless of ownership of assets.

    Annual Gift Tax Exemption

    Gifts per person, $16,000

    Joint gifts by spouse, $32,000

  • Employment Tax Rates
    EmployerTax RateWage Base
    Social Security6.20%$147,000
    Medicare+1.45%No Limit
    =7.65%
    EmployeeTax RateWage Base
    Social Security6.20%$147,000
    Medicare+1.45%No Limit
    =7.65%
    Self EmployedTax RateWage Base
    Social Security12.40%$147,000
    Medicare+2.90%No Limit
    =15.30%

    *Additional 0.9% Medicare tax is imposed on individuals who receive wages or self-employment income in excess of $200,000 ($250,000 for joint return, $125,000 for married filing separate).

  • Depreciation/Amortization
    • 3 – Year Assets (200% DB) Dies, molds, small tools
    • 3 – Year Assets (Straight-line) Computer software (if separately stated from hardware)
    • 5 – Year Assets (200% DB) Autos, light-/heavy-duty trucks, computers, typewriters, copiers, medical equipment, construction equipment, wholesale/retail equipment, private aircraft, some manufacturing equipment
    • 7 – Year Assets (200% DB) Most manufacturing equipment, office furniture, printing equipment
    • 15 – Year Assets (Straight-line) Intangible assets including goodwill, going concern value and covenants not to compete. Qualified improvement property
    • 27.5 – Year Assets (Straight-line) Rental houses, apartments, low-income housing
    • 39 – Year Assets (Straight-line) Commercial and industrial buildings, office buildings, shopping centers, warehouses, manufacturing facilities
    Annual Recovery

    Percent of Original Depreciable Basis Under 200% DB Method

    Recovery Year12345678
    Class
    3 Year33.3344.4514.817.41
    5 Year20.0032.0019.2011.5211.525.76
    7 Year14.2924.4917.4912.498.938.928.934.46
    Section 179 Expense Deduction

    Small Business taxpayers may elect to expense $1.08 million of certain new or used qualifying depreciable property placed in service in tax year 2022. Deduction is phased-out if the cost of qualifying property placed in service during the year exceeds $2.7 million.

    Special (Bonus) Depreciation Allowance

    Bonus depreciation allowance can be claimed for qualified property placed in service:

    • 100% for 2018 through 2022
    • 80% for 2023
    • 60% for 2024
    • 40% for 2025
    • 20% for 2026
    2022 Standard Mileage Deductions
    • Business, $0.58 per mile
    • Charitable, $0.14 per mile
    • Medical or moving purposes for qualified active duty members of the Armed Forces, $0.18 per mile
  • Retirement Plan Limits
    Individual Limitations
    Under Age 50Age 50 & Up
    IRA$6,000 (a)$7,000 (a)
    Roth IRA$6,000 (b)$7,000 (b)
    401(k)/SARSEP Salary Deferrals$20,500$27,000
    Simple Plans$14,000$17,000

    Profit Sharing Plans
    • Corporate, 100% up to $61,000 (c)
    • SEP – self-employed, 20% up to $61,000 (d)
    • SEP – employee, 25% up to $61,000

    (a) Phaseout for deducting IRA contributions (qualified plan participants):

    • Joint: $109,000 – $129,000 AGI
    • Single or HOH: $68,000 – $78,000 AGI

    (b) Phaseout of Roth contribution eligibility:

    • Joint: $204,000 – $214,000 AGI
    • Single or HOH: $129,000 – $144,000 AGI

    (c) Overall plan is limited to 25% of total compensation of all eligible employees (capped at $305k per employee).

    (d) Of net self-employed income after 1/2 self-employment tax deduction (capped at $305k per employee).

  • Social Security Benefits

    Maximum earned income limit:

    AnnualMonthly
    Ages 62-65 years$19,560$1,630
    Months before individual reaches age 66$51,960$4,330
    Months after age 66No LimitNo Limit
  • Taxable Social Security

    Social Security received is taxable if AGI, plus tax-exempt interest, plus one-half of Social Security received, exceeds these base amounts:

    Base Amount For50% Over Base85% Over Base
    Married Filing Jointly$32,001-$44,000$44,001+
    Single/Head of Household$25,001-$34,000$34,001+