2021/2022 changes
Home Tax rebates Retirement/Soc. Security New Business Form Loan Calculator Calculators 2021/2022 changes Links Business Questions Trusts & Valuations Defer tax

 

See Below for  2021 and 2022 rates and information -

For 2021 changes in brackets and amounts please visit:

https://taxfoundation.org/2021-tax-brackets/

 

Please contact us for additional information or to request an appointment.

wnw@wneill.com

Accounting Office, 1430 Church Lane, Easton, PA 18040

Social Security

Social Security Wage ceiling - $147,000 in 2022.  Early retirement income phase out begins at $19,560 in 2022. No ceiling for Medicare 1.45% tax; additional .9% surtax paid on wages that exceed $250,000 (MFJ) $125,000 (MFS) $200,000 (S)(HoH.

Self Employed - Health Insurance deduction

Remains 100% in 2022.

Minimum wage in Pennsylvania - employers with more than 10 full time employees

 $7.25 for 2020 in Pennsylvania; $11.00 in NJ for 2020.

Federal min.  $7.25 for 2021

Corporate Income Tax Rates - 2021  rate remains 21%

Personal Services Corporations - 21%

Annual Gift tax exclusion is $16,000 for 2022.

Other notable 2021 changes:

Child tax credit was increased and paid in advance during July - December, 2021..

The PA Inheritance tax rate is 4.5% for transfers from parents to children.  Gifts or transfers made within one year of death are taxed in addition to transfers effected after death.  A life estate which allows someone the right to remain in a home after transferring ownership has a value subject to the tax.