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Tax brackets will be higher in 2022 due to surging inflation, IRS says
Inflation won’t ‘get better until it gets worse’: Expert
CFRA chief investment strategist Sam Stovall argues consumer prices will peak in January 2022.
The IRS on Wednesday announced 2022 inflation adjustments for a slew of different tax provisions, including federal income brackets and the standard deduction, that reflect a monthslong surge in consumer prices.
Because of a spike in the cost of most consumer goods, the majority of the tax bracket thresholds are rising at a faster pace than is usual, the IRS said.
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Most tax bracket cut-off points rose about 3% compared to the 2021 filing season due to a recent inflation surge, marking the largest increase in four years. The changes will apply to 2022 tax returns that are filed in 2023.