Inflation is still rising, and while many notice the surge in day-to-day expenses, climbing prices may also affect your tax bill, experts say.
While the IRS boosted federal income tax brackets for 2022, standard deductions, 401 plan limits and more, other provisions remain unchanged, leading to higher levies over time.
For example, couples who file together and are selling their primary home may exclude up to $500,000 of profit from capital gains taxes , provided they meet theThese amounts haven't changed since 1997, despite median home sales prices more than doubling over the past 20 years, andHowever, the fixed exemptions are by design, according to Leonard Burman, institute fellow at the Urban Institute and co-founder of the Tax Policy Center.
"I think the intent was to have more Social Security benefits taxable over time," Burman said. "And it was a way to slow the hemorrhaging of the Social Security trust fund."put in place by former President Barack Obama.
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