• April 7, 2022
  • admin
  • 0

For many taxpayers, dealing with the Internal Revenue Service (IRS) can be scary, especially if you are the subject of an IRS tax investigation. If an IRS special agent contacts you regarding an IRS tax investigation, it implies there is some evidence that you may have fallen foul of the tax code. In such situations, it always helps to hire a tax resolution attorney to assist you in finding a resolution. However, the first step to IRS problem resolution is to avoid them altogether by staying updated with the changes in the Tax Code. In this blog, we are going to look at the recently announced modifications to the tax code for the fiscal year 2022.

Increase in the standard deduction

Depending on how you file your federal tax return in 2022, the standard deduction will increase. According to the IRS, the following are the new figures:

  • The standard deduction for married couples filing jointly has increased to $25,900, up $800 from the previous year.
  • The standard deduction for single taxpayers and married individuals filing separately will increase to $12,950 in 2022, an increase of $400.
  • For the tax year 2022, the standard deduction for heads of households will be $19,400, an increase of $600.

Related Blog Post: Behind with Your Taxes? The IRS Fresh Start is a Possible Way Out

Changes in tax brackets

The IRS has adjusted the tax brackets for 2022. It determines how your income will be taxed after you have taken the standard deduction and any other itemized deductions or tax breaks.

If you are filing jointly with your spouse:

  • 10%: Taxable income up to $20,550 (up from $19,900 in 2021)
  • 12%: Taxable income between $20,550 and $83,550 (increased from $19,900 to $81,050 in 2021)
  • 22%: Taxable income between $83,550 and $178,150 (up from $81,050 to $172,750 in 2021)
  • 24%: Taxable income between $178,150 and $340,100 (increased from $172,750 to $329,850 in 2021)
  • 32%: Taxable income between $340,100 and $431,900 (up from $329,850 to $418,850 in 2021)
  • 35%: Taxable income between $431,900 and $647,850 (increased from $418,850 to $628,300 in 2021)
  • 37%: Over $647,850 in taxable income (increased from $628,300 in 2021)

For single taxpayers:

  • Taxable income up to $10,275 (up from $9,950 in 2021): 10%
  • Taxable income between $10,275 and $41,775 (increased from $9,950 to $40,525 in 2021): 12%
  • Taxable income between $41,775 and $89,075 (increased from $40,525 to $86,375 in 2021): 22%
  • Taxable income between $89,075 and $170,050 (increasing from $86,375 to $164,925 in 2021): 24%
  • Taxable income between $170,050 and $215,950 (rising from $164,925 to $209,425 in 2021)
  • Taxable income between $215,950 and $539,900 (increased from $209,425 to $523,600 in 2021): 35%
  • Over $539,900 in taxable income (increasing from $523,600 in 2021): 37%

As it stands, pensioners on a fixed income will pay less in taxes because their income is fixed (while inflation is rising). This, technically lowers their taxable income.

Related Blog Post: Gambling Loss Deductions: All You Need to Know

Changes to tax-advantaged accounts

The IRS also announced modifications to retirement contribution limits. You can save an extra $1,000 in your 401(k) in 2022. Making sure you are maxing out your donations is one method to save money on taxes. Recent changes will also affect taxpayers who qualify for and have a Health Savings Account. The yearly contribution maximum for individuals has been increased to $4,950 (a $150 rise). The maximum amount for a family plan has increased by $250 to $7,400. HSA balances can be carried year-after-year and interest can be earned tax-free.


You must file and pay your taxes on time and abide by the tax code in all respects to avoid an IRS tax investigation or harsh penalties. If you find yourself the subject of an IRS tax investigation in Dallas, contact the Law Offices of Nick Nemeth. Our team of Dallas IRS lawyers is always ready to help you find the best IRS problem resolution. To schedule an appointment, call (972) 426-2553 or fill out our Contact Form.

Please follow and like us:

What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
Quick Inquiry


    Enter the text you see above