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.
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