Sugden Wealth Management

Tax Facts for 2022

Qualified Dividend and Long-Term Capital Gains Rates: The three rates for dividends and long-term capital gains are 0%, 15%, and 20%. 

• 0%: Single taxpayers with incomes between $0 and $41,675; married couples filing jointly with incomes between $0 and $83,350.
• 15%: Single taxpayers with incomes between $41,676 and $459,750; married couples filing jointly with incomes between $83,351 and $517,200.
• 20%: Single taxpayers with incomes over $459,750; married couples filing jointly with incomes over $517,200.

Medicare Surtax: An additional 3.8% Medicare surtax is applied to the lesser of net investment income or the excess of modified adjusted gross income over $200,000 for single taxpayers and $250,000 for married couples filing jointly.

IRA Contribution Limits (Roth or Traditional): The contribution limit for 2022 is $6,000 under age 50 or $7,000 over age 50.

Income Limits for IRA Contribution to be deductible are:

  • single filers covered by a retirement plan at work: Modified adjusted gross income under $68,000–fully deductible contribution; between $68,000 and $78,000–partially deductible contribution; more than $78,000–contribution not deductible.
  • married couples filing jointly, if covered by a retirement plan at work: Modified adjusted gross income under $109,000–fully deductible contribution; between $109,000 and $129,000–partially deductible contribution; more than $129,000–contribution not deductible.

Income Limits for Roth IRA Contribution are:

  • single filers: Modified adjusted gross income under $129,000–full Roth contribution; between $129,000 and $144,000–partial Roth contribution; more than $144,000–no Roth contribution.
  • married couples filing jointly: Modified adjusted gross income under $204,000–full Roth contribution; between $204,000 and $214,000–partial Roth contribution; more than $214,000–no Roth contribution.

Contribution Limits for 401(k), 403(b), 457 plan, or Self-Employed 401(k) (Roth or Traditional)$20,500 under age 50; $27,000 for age 50 and older.

Total 401(k) Contribution Limits, including employer (pretax, Roth, after-tax) and employee contributions and forfeitures are: $61,000 if under age 50; $67,500 or 50-plus.

Health Savings Account Contribution Limit:

  • single coverage: $3,650 (under 55); $4,650 (over 55).
  • family coverage: $7,300 (contributor under 55); $8,300 (contributor 55-plus).
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