2022 AFBA Financial Planning Guide

Chapter 15. Federal & State Taxes Federal Income Tax In General. ................................................................................................ 15–1 Determination of Tax Liability................................................................................................... 15–2 When To File Your Return. ........................................................................................................ 15–3 Combat Zone. .......................................................................................................................... 15–4 State Income Taxes.................................................................................................................. 15–5 Federal Estate And Gift Taxes .................................................................................................. 15–6 State Inheritance Taxes............................................................................................................ 15–7 Tax Tips................................................................................................................................... 15–8 Income Tax Worksheet............................................................................................................. 15–9

You Must File if Your Gross Income is at Least:

If You Are:

And Are:

15–1. FEDERAL INCOME TAX IN GENERAL. Our federal income tax laws are very complicated. As a result, this chapter contains only an overview of the basic provisions of our tax system. Note, this chapter covers 2021 taxes filed April 2022. The requirement to file a tax return is based primarily on your gross income for the tax year, as well as your marital status, and age as of the last day of the tax year. The following table provides the basic guidelines for determining who must file a tax return. Even if you are not required to file a tax return, it could be beneficial to file one anyway. If your employer withheld federal income taxes from your pay or you made estimated tax payments, filing a tax return may allow you to receive some or all of those overpayments back in the form of a tax refund. You may also be able to claim refundable tax credits

Under Age 65

$12,550

Single

Age 65 or Older

14,250

Both Under Age 65 One Spouse is Age 65 or Older Both Spouses are Age 65 or Older

25,100

Married Filing Jointly

26,450

27,800

Married Filing Separately

Any Age

5

Under Age 65

18,800

Head of Household

Age 65 or Older

20,500

Under Age 65

25,100

Qualifying Widow(er)

Age 65 or Older 26,450 Note: If you turned 65 on 1 Jan 2022, you are considered to be age 65 at the end of 2020.

CHAPTER 15: FEDERAL & STATE TAXES

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