Each year, the Internal Revenue Service (IRS) makes rounded inflationary adjustments to the federal income tax brackets and the income phase-outs for various tax deductions and tax credits. Although IRS Publication 17, Your Federal Income Tax, and IRS Publication 970, Tax Benefits for Education, won’t be updated until 2022, the IRS usually publishes the updated numbers in a Revenue Procedure in late October or early November. Starting in 2022, the earned income tax credit is not allowed if the aggregate amount of investment income is more than $10,300. 2022 Income Limits for Certain Capital Gains Tax Rates Mark KantrowitzIncome PhaseoutsThere are several different income phaseouts for education tax benefits. The income phaseouts for the American Opportunity Tax Credit and Lifetime Learning Tax Credit are not adjusted for inflation.

Source: Forbes November 10, 2021 20:25 UTC