What is the personal tax credit for 2022?

Even though tax filing season is still months away, this is actually a great time of year to start thinking about next year's return. After all, the more tax planning you do, the more money you may be able to save. And if you see something now that can reduce your 2022 tax bill, there's still plenty of time to act before the year runs out. But proper tax planning requires an awareness of what's new and changed from last year — and there are plenty of tax law changes and updates for the 2022 tax year that savvy taxpayers need to know about.

Big tax breaks were enacted for the 2021 tax year. But most of those tax law changes expired at the end of 2021. As a result, the child tax credit, child and dependent care credit, earned income credit and other popular tax breaks are different for the 2022 tax year than they were for 2021. The Inflation Reduction Act might impact your 2022 tax return, too. Other 2022 tweaks are the result of new rules or annual inflation adjustments. But no matter how, when or why the changes were made, they can hurt or help your bottom line — so you need to be ready for them. To help you out, we pulled together a list of the most important tax law changes and adjustments for 2022 (some related items are grouped together). Use this information now so you can hold on to more of your hard-earned cash next year when it's time to file your 2022 return.

20 Most-Overlooked Tax Deductions, Credits and Exemptions

You have a choice between taking the standard deduction or claiming itemized deductions each year when filling out your federal income tax return. And, of course, you always want to pick whichever one helps you the most. For about 90% of all taxpayers, claiming the standard deduction is the way to go. But you can't know for sure which route is better for you unless you know how much your standard deduction is the year.

What Are the Federal Income Tax Brackets?

So how much is the standard deduction worth? It depends on your filing status, whether you're 65 or older and/or blind, and whether another taxpayer can claim you as a dependent on their tax return. It's also adjusted annually for inflation, so your 2022 standard deduction is larger than it was for 2021, and your 2023 amount will be higher than your 2022 amount.

There are also some special rules that apply if you're claiming the standard deduction. For instance, if you recently had a "net qualified disaster loss," your standard deduction may be higher (see below). On the other hand, if you're married but filing separate tax returns, you can't take the standard deduction if your spouse itemizes deductions. You can't claim it if you're a dual-status alien, either.

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So, as it turns out, determining your standard deduction amount isn't as simple as it may seem on the surface. The size of your standard deduction differs depending on a variety of factors, which are described below. Keep reading to find the standard deduction amount that applies to you for the 2022 and 2023 tax years.

2022 Standard Deduction Amounts

For 2022 federal income tax returns, which will be due April 18, 2023, the standard deduction amounts are as follows:

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Filing Status2022 Standard DeductionSingle; Married Filing Separately$12,950Married Filing Jointly; Qualifying Widow(er)$25,900Head of Household$19,400

If you're at least 65 years old or blind, you can claim an additional 2022 standard deduction of $1,400 ($1,750 if using the single or head of household filing status). If you're both 65 and blind, the additional deduction amount is doubled.

Tax Changes and Key Amounts for the 2022 Tax Year

If you can be claimed as a dependent by another taxpayer, your 2022 standard deduction is limited to the greater of $1,150 or your earned income plus $400 (but the total can't be more than the basic standard deduction for your filing status).

2023 Standard Deduction Amounts

Even though you haven't filed your 2022 return yet, smart taxpayers will start keeping an eye on their 2023 return now. So, for the early birds out there, here are the 2023 standard deduction amounts.

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Filing Status2023 Standard DeductionSingle; Married Filing Separately$13,850Married Filing Jointly; Qualifying Widow(er)$27,700Head of Household$20,800

Taxpayers who are at least 65 years old or blind can claim an additional standard deduction of $1,500 is allowed for 2023 ($1,850 if you're claiming the single or head of household filing status). As with the 2022 standard deduction, the additional deduction amount is doubled if you're both 65 or older and blind.

How Inflation Can Impact Your Taxes

If you can be claimed as a dependent on another person's tax return, your 2023 standard deduction is limited to the greater of $1,250 or your earned income plus $400 (again, the total can't be more than the basic standard deduction for your filing status).

Increased Standard Deduction for Certain Disaster Losses

If you have a net "qualified disaster loss," you can claim a larger standard deduction. A qualified disaster loss is a casualty or theft loss of personal-use property that is attributable to:

• A major disaster declared by the President in 2016;
• Hurricane Harvey;
• Tropical Storm Harvey;
• Hurricane Irma;
• Hurricane Maria;
• California wildfires in 2017 and January 2018;
• A major disaster declared by the President between January 1, 2018, and February 18, 2020, if the loss occurred before January 19, 2020; or
• A major disaster declared by the President before February 26, 2021, if the loss occurred between December 28, 2019, and December 27, 2020, and continued no later than January 26, 2021 (not including losses attributable to a major disaster declared only by reason of COVID-19).

You need to complete IRS Form 4684 (opens in new tab) to see if you have a net qualified disaster loss.

Standard Deduction Amounts for 2017 to 2021

The standard deduction was much lower before the Tax Cuts and Jobs Act of 2017, which basically doubled the standard deduction. As a result, starting with the 2018 tax year, fewer people itemize and more Americans claim the standard deduction.

If you're filing an amended tax return or otherwise want to know how the standard deduction has changed over the past few years, here's what the basic standard deduction looked like from 2017 to 2021.

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2021 Standard Deduction AmountsFiling StatusStandard DeductionSingle; Married Filing Separately$12,550Married Filing Jointly; Qualifying Widow(er)$25,100Head of Household$18,800

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2020 Standard Deduction AmountsFiling StatusStandard DeductionSingle; Married Filing Separately$12,400Married Filing Jointly; Qualifying Widow(er)$24,800Head of Household$18,650

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2019 Standard Deduction AmountsFiling StatusStandard DeductionSingle; Married Filing Separately$12,200Married Filing Jointly; Qualifying Widow(er)$24,400Head of Household$18,350

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2018 Standard Deduction AmountsFiling StatusStandard DeductionSingle; Married Filing Separately$12,000Married Filing Jointly; Qualifying Widow(er)$24,000Head of Household$18,000

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2017 Standard Deduction AmountsFiling StatusStandard DeductionSingle; Married Filing Separately$6,350Married Filing Jointly; Qualifying Widow(er)$12,700Head of Household$9,350

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