Inflation is about to ripple through the tax code—and the nation’s hodgepodge of tax provisions means some people will be hurt and some won’t.
Every year, the tax code requires the IRS to adjust dozens of provisions for inflation based on changes in consumer prices. The agency is likely to announce the 2022 figures in the coming weeks.
The standard deduction and tax bracket levels, which matter most to middle-income taxpayers, should increase by about 3.1%. That is about double many of the prior year’s increases, according to Wolters Kluwer.
