The following table provides some important federal tax information for 2022, as compared with 2021. Some of the dollar amounts are unchanged and some changed only slightly due to inflation.
| Social Security/ Medicare | 2022 | 2021 |
| Social Security Tax Wage Base | $147,000 | $142,800 |
| Medicare Tax Wage Base | No limit | No limit |
| Employee portion of Social Security | 6.2% | 6.2% |
| Employee portion of Medicare | 1.45% | 1.45% |
| Individual Retirement Accounts | 2022 | 2021 |
| Roth IRA Individual, up to 100% of earned income | $6,000 | $6,000 |
| Traditional IRA Individual, up to 100% of earned Income | $6,000 | $6,000 |
| Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older | $1,000 | $1,000 |
| Qualified Plan Limits | 2022 | 2021 |
| Defined Contribution Plan limit on additions on Sections 415(c)(1)(A) | $61,000 | $58,000 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $245,000 | $230,000 |
| Maximum compensation used to determine contributions | $305,000 | $290,000 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) | $20,500 | $19,500 |
| 401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older | $6,500 | $6,500 |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $14,000 | $13,500 |
| SIMPLE additional “catch-up” contributions for employees age 50 and older | $3,000 | $3,000 |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $135,000 | $130,000 |
| Compensation defining key employee (officer) | $200,000 | $185,000 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) | $650 | $650 |
| Driving Deductions | 2022 | 2021 |
| Business mileage, per mile | 58.5 cents | 56 cents |
| Charitable mileage, per mile | 14 cents | 14 cents |
| Medical and moving, per mile | 18 cents | 16 cents |
| Business Equipment | 2022 | 2021 |
| Maximum Section 179 deduction | $1.08 million | $1.05 million |
| Phase out for Section 179 | $2.7 million | $2.62 million |
| Transportation Fringe Benefit Exclusion | 2022 | 2021 |
| Monthly commuter highway vehicle and transit pass | $280 | $270 |
| Monthly qualified parking | $280 | $270 |
| Standard Deduction | 2022 | 2021 |
| Married filing jointly | $25,900 | $25,100 |
| Single (and married filing separately) | $12,950 | $12,550 |
| Heads of Household | $19,400 | $18,800 |
| Domestic Employees | 2022 | 2021 |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. | $2,400 | $2,300 |
| Business Meals | 2022 | 2021 |
| Deduction for eligible business-related food and beverage expenses | 100%* | 100%* |
| Estate Tax | 2022 | 2021 |
| Federal estate tax exemption | $12.06 million | $11.7 million |
| Maximum estate tax rate | 40% | 40% |
| Annual Gift Exclusion | 2022 | 2021 |
| Amount you can give each recipient | $16,000 | $15,000 |
* Provided by restaurants. This is part of the Consolidated Appropriations Act, signed into law on December 27, 2020. The 100% deduction is scheduled to return to 50% in 2023, unless Congress acts to extend it.