Market Update November 17, 2021

REAL ESTATE HEADLINES
Why home prices will keep rising in 2022. Most forecasters expect home price growth to slow to single-digits next year. Nobody expects them to fall. Here’s why.

2022 TAX BRACKETS CHANGING DUE TO INFLATION

As the US experiences its highest levels of inflation since the 1970s, the IRS is responding accordingly by adjusting it’s standard deduction, income tax rates and dozens of other tax provisions.

Ever since the Tax Cuts and Jobs Act passed in 2017, approximately 90% of households take the standard deduction instead of itemizing their taxes. So the following changes will most likely impact most readers. Below are the increased amounts to standard deductions for the most common filers:
1. Single Filers: $12,950 (▲$400)
2. Head of Hshld: $19,400 (▲$600)
3. Married + joint: $25,900 (▲$800)
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The IRS also made slight changes to the tax brackets. The lowest tax bracket of 10% now includes single files who earn up to $10,275 and joint filers who earn up to $20,550.

CONTINUED…

The top tax rate currently is 37% for single filers who make more than $539,900 and joint filers who make over $647,850. If you happen to be in the top tax bracket, the TCJA will sunset in 2026 and the 37% will revert to its previous 39.6%.

Below you’ll find the 2022 tax brackets.