IRS To Boost Tax Brackets , Due to Quicker Pace, of Inflation.
The Internal Revenue Service (IRS) says thresholds on income tax brackets will rise in 2022.
The Internal Revenue Service (IRS) says thresholds on income tax brackets will rise in 2022.
CBS News reports the IRS has made these adjustments due to rising consumer prices in an inflated economy.
CBS News reports the IRS has made these adjustments due to rising consumer prices in an inflated economy.
Though adjustments are made to tax brackets each year, these increases are higher than normal.
The updated thresholds reflect increases of around 3%.
.
According to CBS News, married couples must now earn nearly $20,000 more to enter the highest tax bracket.
According to CBS News, married couples must now earn nearly $20,000 more to enter the highest tax bracket.
Basic income tax rates will not change.
Set by the Tax Cuts and Jobs Act, the lowest income tax bracket is 10%.
The highest is 37%.
.
Experts say the adjustment does little to account for accelerating inflation.
.
Experts say the adjustment does little to account for accelerating inflation.
.
Americans are now paying considerably more for everyday items they need to survive.
Americans are now paying considerably more for everyday items they need to survive.
On Nov.
10, the Bureau of Labor Statistics said consumer prices have risen 6.2% from a year ago.
On Nov.
10, the Bureau of Labor Statistics said consumer prices have risen 6.2% from a year ago