![]() ![]() ![]() Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. We do not include the universe of companies or financial offers that may be available to you.īankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. But this compensation does not influence the information we publish, or the reviews that you see on this site. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. The offers that appear on this site are from companies that compensate us. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.īankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Just keep in mind, when you ignore tax planning, it is like leaving a giant tip for the IRS.We are an independent, advertising-supported comparison service. While the new higher tax brackets may help lower your taxes, there are many tax-planning moves available to help you reach your financial goals faster and easier. The higher your income, the more valuable tax planning guidance can be. Work with your fiduciary financial planner and tax pro to make sure you are being proactive with your tax planning. Similarly, the IRA catch-up contribution limit will remain a measly $1,000 for those age 50 and older in 2022. MORE FROM FORBES 6 Year-End Tax Planning Moves For Small Business Owners By David Rae IRA Contribution Limits Stay the Same Yet Againįor yet another year, the IRA and Roth IRA contribution limits remain unchanged. For 2022, the IRA contribution limit is just $6,000. Maximum contributions to the small business retirement plan combination of a 401(k) plus Cash Balance Plan could easily approach $300,000 per year or more if both spouses work in the business. Setting up a solo 401(k) combined with a Cash Balance Plan can be an excellent way for high-income business owners to minimize their tax bills and plan for a secure retirement. For taxpayers who are 50 or older, an additional $6,500 catch-up contribution is allowed bringing the grand total to $67,5. The maximum contribution between employee and employer has increased to $61,000 per year. The new maximum employee contribution to a 401(k) plan will be $20,500. Those looking to further reduce their tax liabilities in 2022 will be allowed to make larger 401(k) contributions. The standard deduction will be $12,950 for single tax filers. Likewise, the maximum contribution to a flexible spending account (FSA) for healthcare has increased to $2,850, up from $2,750 in 2021. The new standard deduction for married couples in 2022 will be $25,900. While not life-changing, every bit helps. For married couples, this valuable tax break will be increased by $800. ![]() The most common tax deduction for the average taxpayer is the standard deduction. ![]()
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