IRS Forced to Make Big Changes Thanks to Rising Inflation

IRS Forced to Make Big Changes Thanks to Rising Inflation

(AbsoluteNews.com) – Inflation is the highest it’s been in 30 years. On November 10, the Department of Labor announced year-over-year inflation for consumer prices hit 6.2% in October. Now, the IRS has made a big change to help taxpayers weather the storm.

On the same day the Labor Department released the inflation rates, the IRS announced adjustments to federal income brackets in 2022. Some analysts worry rising inflation might cause “bracket creep,” pushing the American people into higher tax brackets. That can force people to pay higher taxes without having higher incomes.

The new tax rates for individuals and joint filers are as follows, respectively:

  • 10% — income up to $10,275 or $20,550
  • 12% — income between $10,275 and $41,775 or $20,550 to $83,550
  • 22% — income between $41,775 to $89,075 or $83,550 to $178,150
  • 24% — income between $89,075 to $170,050 or $178,150 to $340,100
  • 32% — income between $170,050 to $215,950 or $340,100 to $431,900
  • 35% — income between $215,950 to $539,900 or $431,900 to $647,850
  • 37% — income over $539,900 or $647,850

Americans are paying more for food, gas, and other necessities. Although the IRS raised the tax brackets, the federal government also needs to tackle inflation before it destroys the economy.

If anyone has any questions about their new tax rates, they should contact their accountant or a tax professional.

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