For more information, see: How to Determine Your Income Tax Bracket. The most commonly used business structure that is subject to corporate taxes is a C-Corporation. The federal income tax rates for 2022 did not change from 2021. That So, if you owe $3,300 in taxes, and you are eligible for a $200 tax credit, your balance will be reduced to $3,100. 78,500, $ To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. There are seven federal individual income tax brackets; the federal corporate income tax system is flat. Resident tax rates 202223 The above rates do not include the Medicare levy of 2%. Homeowners, veterans, people with disabilities, senior citizens, and charitable organizations may be eligible for property tax exemptions. IRS.com is a privately owned website that is not affiliated with any government agencies. Tax-Rates.org provides free access to tax rates, calculators, and more. State and Local Individual Income Tax Collections per Capita, Combined State and Average Local Sales Tax Rate, State and Local General Sales Tax Collections per Capita, State Gasoline Tax Rate (cents per gallon), State Cigarette Tax Rate (dollars per 20-pack), Property Taxes Paid as a Percentage of Owner-Occupied Housing Value, State and Local Property Tax Collections Per Capita, 1325 G St NW The IRS used to use the Consumer Price Index (CPI) as a measure of inflation prior to 2018. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. 2022 Federal Income Tax Rates and Thresholds Federal Income Tax Rates and Thresholds are used to calculate the amount of Federal Income Tax due each year based on annual income. Tax rate of 3.5% on taxable income between $25,001 and $100,000. The standard deduction will increase by $400 for single filers and by $800 for joint filers (Table 2). We strive to be the most user-friendly tax-related platform. About Us. Texas law sets an employers tax rate at their NAICS industry average or 2.7 percent, whichever is higher. Tax rate of 2.75% on taxable income between $7,501 and $9,800. In a progressive individual or corporate income tax system, rates rise as income increases. Tax Expenditures, Credits, and Deductions, Location Matters: State Tax Costs of Doing Business, Tax Reforms for Mobility and Modernization, Consumption Tax Policies in OECD Countries, Tax Foundation is a 501(c)(3) educational nonprofit, https://www.irs.gov/pub/irs-drop/rp-20-45.pdf, https://www.bls.gov/cpi/additional-resources/chained-cpi-introduction.pdf, Business Tax Expenditures, Credits, and Deductions, Individual Capital Gains and Dividends Taxes, Individual Tax Expenditures, Credits, and Deductions. Help us continue our work by making a tax-deductible gift today. The federal tax brackets are broken down into seven (7) taxable income groups, The U.S. imposes a progressive income tax where rates increase with income. 71,500, $ Because C-Corporations pay corporate taxes on their revenue in addition to the personal income taxes shareholders and owners pay on profits withdrawn from the company, profits received from a C-Corporation are subject to a phenomenon known as double taxation. Marginal Tax Rate. The state of Texas does provide a property exemption, which allows property owners to qualify for a reduction in their property taxes. All incorporated Texas businesses, regardless of whether or not they are required to pay any taxes, should file at least an informational tax return with the Texas Department of Revenue as well as a federal business tax return (Form 1120) with the IRS. The first step towards understanding Texass tax code is knowing the basics. Breakdown of your income taxes for tax year 2022. If you make $70,000 a year living in the region of Texas, USA, you will be taxed $8,387. 2023 IRS Income Tax Brackets vs. 2022 Tax Brackets right_container Health Money Work & Jobs Social Security Medicare Caregiving More AARP en Espaol Back Health Close Menu Wellness Conditions & Treatments Drugs & Supplements Health Care & Coverage Benefits AARP Eye Center Tips to Protect Your Eyesight AARP Hearing Center For the Single, Married Filing Jointly, Married Filing Separately, and Head of Household filing statuses, the LA tax rates and the number of tax brackets remain the same. Single tax filers with taxable income up to $27,272 (double if filing jointly) would The table below shows the tax brackets for the federal income tax, and it reflects This allows the corporate tax burden to be spread more evenly among companies with various revenue levels. US Individual income tax return. The Talent.com Online Salary and Tax Calculator can help you understand your net pay. Why your IRS federal tax returns hold the answer. Our goal is to make sure understanding it isnt. Tax rate of 4.25% on taxable income over $100,000. You might be using an unsupported or outdated browser. The AMT is levied at two rates: 26 percent and 28 percent. They are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%, depending on the tax bracket. What taxes do you pay in Texas? Everyone can benefit from learning more about the taxes we pay and their impact on the world around us. Bracket creepresults in an increase in income taxes without an increase in real income. The Income Tax Rates and Thresholds used depends on the filing status used when completing an annual tax return. Districts with local compression that exceeds state compression will have a lower maximum M&O tax rate. Texas residents pay no personal state Here are the 2022 standard deduction amounts for each filing status: There is an additional standard deduction of $1,400 for taxpayers who are over age 65 or blind. Enter household income you received, such as wages, unemployment, interest and dividends. 75,000, $ Each states tax code is a multifaceted system with many moving parts, andTexasis no exception. The information contained on this site is the opinion of G. Blair Lamb MD, FCFP and should not be used as personal medical advice. The AMT uses an alternative definition of taxable income called Alternative Minimum Taxable Income (AMTI). The 2022 state personal income tax brackets are updated from the Texas and, Texas tax forms are sourced from the Texas. Tax-Rates.org The 2022-2023 Tax Resource. Read more. The state income tax rate in Texas is 0% while federal income tax rates range from 10% to 37% For 2021, you can contribute up to $19,500 (up to $26,000 if you're age 50 or older). Tax Type. 79,500, $ 77,000, $ A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Many tax provisionsboth at the federal and state levelare adjusted for inflation. The North American Industry Classification System ( NAICS) assigns an average tax rate for each industry. Federal Income Tax - Minimum Bracket 10%, Maximum Bracket 39.6%. As a 501(c)(3) nonprofit, we depend on the generosity of individuals like you. 73,000, $ Inflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. You can use our free Texas income tax calculator to get a good estimate of what your tax liability will be come April. Capital One Venture X Vs. Chase Sapphire Reserve, $ The first step towards understanding Texass tax code is knowing the basics. You would pay 12% on the chunk of income between $14,651 and $55,900 (so, $4,950). Facts & Figures: How Does Your State Compare? If you are looking for 2021 tax rates, you can find them HERE. Instead, you would pay 10% on the first $10,275 (or $1,027.50) plus 12% on the remaining $19,725 (or $2,367). whether you are single, a head of household, married, etc). Please remember that the income tax code is very complicated, and while we can provide a good estimate of your Federal and Texas income taxes, your actual tax liability may be different. IR-2022-203, November 22, 2022. The Tax Foundation is the nations leading independent tax policy nonprofit. Texas' corporate income tax is a business tax levied on the gross taxable income of most businesses and corporations registered or doing business in Texas. For the 2022 tax year, that same bracket covers $47,299 of taxable income ($89,075 $41,776 = $47,299). A tax bracketis the range of incomes taxed at given rates, which typically differ depending on filing status. You can learn more about the different types of tax credits here. Resident tax rates 202122 The above rates do not include the Medicare levy of 2%. 71,000, $ The first $14,650 of your income will be taxed at 10% (or $1,465). Minimum Tax Rate for 2022 is 0.31 percent. Everyone is encouraged to see their own healthcare professional to review what is best for them. IRS.COM is a non-government website designed to help taxpayers find accurate, easy-to-understand tax information, valuable tax products, and tax-related services. 72,500, $ The personal exemption for 2022 remains at $0 (eliminating the personal exemption was part of the Tax Cuts and Jobs Act of 2017 (TCJA). Texas has no corporate income tax at the state level, making it an attractive tax haven for incorporating a business. How does Texass tax code compare? Some calculators may use taxable income when calculating the average tax rate. This marginal tax rate means that your immediate additional income will be taxed at this rate. Still have questions or cant find what you are looking for? Texas has a Long-term capital gains are taxed using different brackets and rates than ordinary income. The Earned Income Tax Credit (EITC) is a refundable tax credit targeted at low-income working families. This article gives you the tax rates and related numbers that you will need to prepare your 2022 federal income tax return. The other states that dont charge an individual income tax are: According to the Tax Foundation, Texas has the fourth-lowest tax burden among the fifty states for the tax year 2019 (the latest economic data). However, this exemption phases out for high-income taxpayers. In 2022, the income limits for all tax brackets and all filers will be adjusted for inflation and will be as follows (Table 1). If you are looking for an alternative to surgery after trying the many traditional approaches to chronic pain, The Lamb Clinic offers a spinal solution to move you toward mobility and wellness again. But that does not mean you pay 12% on all your income. Once youve calculated your income tax, you may wonder how to reduce your tax bill. A tax deduction is an item you can subtract from your income to lower your overall taxable income. Taxpayers are encouraged to consult their tax advisors for guidance regarding specific situations. Texas has a 6.25 percent state sales tax rate, a max local sales tax rate of 2.00 percent, and an average combined state and local sales tax rate of 8.20 percent. The Texas corporate income tax is the business equivalent of the Texas personal income tax, and is based on a bracketed tax system. 2001-2020 The Pain Reliever Corporation. A tax creditis a provision that reduces a taxpayers final tax bill, dollar-for-dollar. 77,500, $ Please take our quick, anonymous survey, conducted in partnership with the University of North Carolina Tax Center. The entities that may be taxed include: The state taxes a corporation based on its income threshold, deductions and the business type. Questions Nothing stated in this correspondence supersedes the Texas Education Code or the Texas Administrative Code. Before the official 2022 Texas income tax rates are released, provisional 2022 tax rates are based on Texas' 2021 income tax brackets. Maximum Tax Rate for 2022 is 6.31 percent. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. Some calculators may use taxable income when calculating the average tax rate. The tables below help demonstrate this concept. 78,000, $ Refundable vs. Texas is one of seven states that do not collect a personal income tax. As of 2007, Texas generates supplemental tax revenue through a corporate gross receipts tax. [2] Robert Cage, John Greenlees, and Patrick Jackman, Introducing the Chained Consumer Price Index, U.S. Bureau of Labor Statistics, May 2003,https://www.bls.gov/cpi/additional-resources/chained-cpi-introduction.pdf. Your There are seven federal income tax rates in 2022: 10percent, 12 percent, 22percent, 24percent, 32percent, 35percent, and 37percent. All Texas state taxes are deductible from gross income when calculating federal taxes, so any Texas corporate income tax paid can be deducted from a business' gross taxable income before calculating your federal taxable income. 76,500, $ Foreign resident tax rates 202223 Foreign resident tax rates 202122 Children The Lamb Clinic provides a comprehensive assessment and customized treatment plan for all new patients utilizing both interventional and non-interventional treatment methods. The AMT exemption amount for 2022 is $75,900 for singles and $118,100 for married couples filing jointly (Table 3). What Is The Federal Income Tax Rate In TexasPercent Of Income To Taxes = 35%. Only the federal income tax applies. Texas Has No State Income Tax. Texas is one of seven states that do not collect a personal income tax. Texas Has No Individual Income Tax As Of 2021, But It Does Levy A Franchise Tax Of 0.375% On Some Wholesalers And Retail Businesses. Our Opinions Are Our Own. In general, 2022 personal tax returns are due by April 15, 2023. Suite 950 Erica York is Senior Economist and Research Manager with Tax Foundations Center for Federal Tax Policy. [1] Internal Revenue Service, Revenue Procedure 2020-45,https://www.irs.gov/pub/irs-drop/rp-20-45.pdf. 75,500, $ Tax-Rates.org provides free access to tax rates, calculators, and more. Texas corporations still, however, have to pay the federal corporate income tax. Search. The Lamb Clinic understands and treats the underlying causes as well as the indications and symptoms. Sales tax on taxable purchasesProperty tax on real estate or business property ownedUS federal income taxFederal employment taxesGasoline tax 74,500, $ Tax Commission. You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare? Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and global levels. 2022 Forbes Media LLC. Colorado Proposition 121, the State Income Tax Rate Reduction Initiative, was on the ballot in Colorado as an initiated state statute on November 8, 2022. Enter how many dependents you will claim on your 2021 tax return. WASHINGTON The Internal Revenue Service today encouraged taxpayers to take simple steps before the end of the year to make filing their 2022 federal tax return easier. Tax Expenditures, Credits, and Deductions, Location Matters: State Tax Costs of Doing Business, Tax Reforms for Mobility and Modernization, Consumption Tax Policies in OECD Countries. 76,000, $ Click on the income amounts below to see how much tax you may pay based on the filing status and state entered above. Some of the most common 501(c) organizations include: In order to gain Texas tax-exempt status, a corporation must qualify as a 501(c) and obtain a Nonprofit Tax-Exempt ID Number from the IRS. Her analysis has been featured in The Wall Street Journal, The Washington Post, Politico, and other national and international media outlets. The standard deduction reduces a taxpayers taxable income by a set amount determined by the government. Washington, DC 20005, state sales tax rate, a max local sales tax rate of 2.00 percent, and an average combined state and local sales tax rate of, . Finally, you would pay 22% on the income you made over $55,900, which comes out to $3,102. Get In Touch With A Pre-screened Financial Advisor In 3 Minutes. S-Corporations and other flow-through entities aren't subject to the double taxation of revenue imposed on a C-Corp, because they aren't required to pay corporate taxes on their revenue. Enter your IRA contributions for 2021. Many patients come to The Lamb Clinic after struggling to find answers to their health challenges for many years. Texas is one of nine states that doesnt have an individual income tax. Itis sometimes referred to as a hidden tax, as it leaves taxpayers less well-off due to higher costs and bracket creep, while increasing the governments spending power. The Alternative Minimum Tax (AMT) is a separate tax system that requires some taxpayers to calculate their tax liability twicefirst, under ordinary income tax rules, then under the AMTand pay whichever amount is highest. Choose the filing status you use when you file your tax return. Our state ranking and income tax figures are based on a family of four (married parents with two children) earning the national median household income of $50,000 per year. If you make $14,097,595 in Texas, what will your paycheck after tax be? If you do not agree with these terms and conditions, please disconnect immediately from this website. On the next page, you will be able to add more details like itemized deductions, tax credits, capital gains, and more. The maximum Child Tax Credit is $2,000 per qualifying child and is not adjusted for inflation. Tax rate of 1.75% on taxable income between $5,001 and $7,500. The same paycheck covers less goods, services, and bills. The maximum Earned Income Tax Credit (EITC) in 2022 for single and joint filers is $560 if the filer has no children (Table 5). While Texas does not have a corporate income tax, a gross receipts tax is applicable to all companies and serves a similar purpose. It generates revenue from sales and use tax, property and corporate income taxes. Tax rate of 3.75% on taxable income between $9,801 and $12,200. The following example can give you an idea of how to calculate your tax bracket. To prevent low- and middle-income taxpayers from being subject to the AMT, taxpayers are allowed to exempt a significant amount of their income from AMTI. Suite 950 In general, all businesses operating in Texas which are not registered as a flow-through entity (like a sole proprietorship, a partnership, or an S-Corporation) must report their income and pay both Texas and Federal corporate income taxes on their earnings. The current corporate tax rates have been in effect since 1994 (unlike the federal income tax brackets, which are updated yearly for inflation). The IRS allows you to claim one type of tax deduction, but not both, so you should choose whichever type of deduction gives you the biggest tax reduction. Enter your total 401k retirement contributions for 2021. Currently, Texas unemployment insurance rates range from 0.31% to 6.31% with a Marginal tax rate. Many chronic pain conditions are part of a larger syndrome such as fibromyalgia. Washington, DC 20005. The Texas income tax has one tax bracket, with a maximum marginal income tax of 0.00% as of The federal corporate tax's brackets differ from the personal income tax in that the brackets are not completely progressive (the last tax bracket is not the highest). 79,000, $ Here are the tax rate brackets for each filing status: Being in a certain tax bracket doesnt mean that all your income will be taxed at that rate. Only the Federal Income Tax applies. In total, you would pay $3,394.5 in income tax, before deductions. This means you are in the 22% tax bracket. Your continued use of this site indicates your acceptance of the terms and conditions specified. Note that the Tax Foundation is a 501(c)(3) educational nonprofitand cannot answer specific questions about your tax situation or assist in the tax filing process. This weeks map examines states rankings on the individual income tax Texas does not have a corporate income tax but does levy a gross receipts tax. While Texas does not assess a property tax on real estate, all state localities assess property taxes. The 2022 tax brackets have been changed since 2021 to adjust for inflation.Its important to remember that moving up into a higher tax bracket does not mean that all of your income will be taxed at the higher rate. Chief among these is their income tax, which is a tax imposed by the federal and sometimes state or local governments on income generated by individuals and businesses. There are two primary ways to do this: tax credits and tax deductions. The top marginal income tax rate of 37 percent will hit taxpayers withtaxable incomeabove $539,900 for single filers and above $647,850 for married couples filing jointly. How does Texas collecttax revenue? She previously worked as an auditor at a large community bank in Kansas and interned at Tax Foundations Center for State Tax Policy. The taxpayer then needs to pay the higher of the two. There are two main types of tax deductions: the standard deduction and itemized deductions. Some states also have state income taxes, which need to be calculated separately. Like the personal income tax the federal business tax is bracketed based on income level, with eight corporate tax brackets. Texass tax system ranks 14th overall on our 2022 State Business Tax Climate Index. Texas state income tax rate for 2022 is 0% because Texas does not collect a 74,000, $ , which are compiled from our annual publication. The state of Texas imposes a franchise tax, which is a tax on the following entities formed, organized or doing business in the state. Capital gains taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. View how much tax you may pay in other states based on the filing status and state entered above. An income tax can only be enacted by public vote, and any income tax proceeds must be used to reduce the Texas property tax. 70,500, $ Non-Refundable Tax Credits, $1,027.50 + 12% of the amount over $10,275, $4,807.50 + 22% of the amount over $41,775, $15,213.50 + 24% of the amount over $89,075, $34,647.50 + 32% of the amount over $170,050, $49,335.50 + 35% of the amount over $215,950, $162,718 + 37% of the amount over $539,900, $30,427 + 24% of the amount over $178,150, $69,295 + 32% of the amount over $340,100, $98,671 + 35% of the amount over $431,900, $174,253.50 + 37% of the amount over $647,850, $86,127 + 37% of the amount over $323,925, $33,148.50 + 32% of the amount over $170,050, $47,836.50 + 35% of the amount over $215,950, $162,218.50 + 37% of the amount over $539,900, Married Filing Jointly or Qualifying Widow(er). This means you are in the 12% tax bracket. A tax credit directly reduces the tax balance that you owe. The IRS provided legal guidance on the new rates in Announcement 2022-13 PDF, issued today. Texas does not have a corporate income tax but does levy a gross receipts tax. In 2022, the first $16,000 of gifts to any person are excluded from tax, up from $15,000. Bracket creep occurs when inflation pushes taxpayers into higher income tax brackets or reduces the value of credits, deductions, and exemptions. The Tax Foundation is the nations leading independent tax policy nonprofit. Are you sure you want to rest your choices? Texas does not have an individual income tax. Unfortunately, tax policy can be complex. The exclusion is increased to $164,000 from $159,000 for gifts to spouses who are not citizens of the United States. This calculator estimates the average tax rate as the federal income tax liability divided by the total gross income. Texas does not have an inheritance or estate tax. Tax rate of 0.75% on taxable income between $2,001 and $5,000. Input the total of your itemized deductions, such as mortgage interest, charitable contributions, medical and dental expenses, and state taxes. For 2021, you can contribute up to $6,000 (up to $7,000 if you're age 50 or older). Terms and conditions for the use of this DrLamb.com web site are found via the LEGAL link on the homepage of this site. Local tax governments may charge up to an additional 2% tax for a maximum combined rate of 8.25%. If you make $55,000 a year living in the region of Texas, USA, you will be taxed $9,076. Each states tax code is a multifaceted system with many moving parts, andTexasis no exception. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment. These new rates become effective July 1, 2022. You are unmarried, and you had $30,000 of taxable income in 2022. The new inflation adjustments are for tax year 2022, for which taxpayers will file tax returns in early 2023. In April of every year, millions of Americans sit down to file their taxes. However, the owners or members of the corporation must report their share of the corporation's income on their personal tax returns and pay Texas and federal income tax. NOTE: There are no personal exemption amounts for 2022. 72,000, $ Click the tabs below to learn more! For over 80 years, our goal has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity. There are seven federal income tax rates in 2022: 10 percent, 12 percent, 22 You You are a head of household (meaning you pay more than half the costs to maintain your home and have a qualifying dependent (such as a child or relative)) and you made $70,000 of taxable income in 2022. As mentioned previously, the United States has a progressive tax system, meaning you get taxed more as you make more money. 80,000. The federal tax brackets are broken down into seven (7) taxable income groups, based on your federal filing statuses (e.g. So, for 2022, the 22% bracket for single filers is $1,450 wider than it was for 2021. A margin tax creates less distortion than a gross receipts tax. The amount of the additional standard deduction increases to $1,750 for taxpayers who are claiming the single or head of household filing status. Please read this section carefully. The Alternative Minimum Tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding theindividual income tax. Expand All Part 1: Colorado Residency Part 2: Calculating Colorado Tax Part 3: Additions to Taxable Income Part 4: Subtractions from Taxable Income Part 5: Income Tax Credits Part 6: Income Tax Withholding Part 7: Estimated Tax Payments Some examples of items that are exempt from sales and use taxes are groceries, over the counter medicines, and vitamins. Texas has no state-level income taxes, although the Federal income tax still applies to income earned by Texas residents. There are only seven states nationwide that din't collect a state income tax - however, when a state has no income tax, it generally makes up for lost tax revenue with higher sales or property taxes. The measure was approved. These spreadsheets provide comptroller tax information, including property tax rates by district for the specified tax years. The United States has what is called a progressive income tax system, meaning the greater your income, the more you pay. Limits on the deduction begin phasing in for taxpayers with income above $170,050 (or $340,100 for joint filers) in 2022 (Table 7). It has no impact on what tax bracket you fall into. The maximum M&O tax rate for any district in TY 2022 will be $1.0641 ($0.8941 + $0.17). How to Determine Your Income Tax Bracket. If you paid for any of the following items during the tax year, you may be able to use them to claim an itemized deduction: For a more in-depth overview of tax deductions, click here. In addition to the Texas corporate income tax, Texas corporations must also pay the federal corporate income tax. Tax-Rates.org The 2022-2023 Tax Resource. This means that these brackets applied to all income earned in 2022, and the tax return that uses these tax rates was due in April 2023. However, not everyone is taxed the same. [1]However, with the Tax Cuts and Jobs Act of 2017 (TCJA), the IRS now uses the Chained Consumer Price Index (C-CPI) to adjust income thresholds, deduction amounts, and credit values accordingly.[2]. Texass tax system ranks 14th overall on our 2022. Enter your gross income. This calculator estimates the average tax rate as the state income tax liability divided by the total gross income. The credit offsets tax liability, the total amount of tax debt owed by an individual, corporation, or other entity to a taxing authority like the Internal Revenue Service (IRS), and can even generate a refund, with earned income credit amounts calculated on the basis of income and number of children. Deductions and personal exemptions are taken into account, but some state-specific deductions and tax credit programs may not be accounted for. Federal income tax brackets were last changed one year ago for tax year 2021, and the tax rates were previously changed in 2017. (adsbygoogle = window.adsbygoogle || []).push({}); Everything You Should Know About Getting, Using, and Renewing Your ITIN, Is Student Loan Forgiveness Taxable? Texas may also require nonprofits to file additional paperwork with the Texas Department of Revenue to gain exemption from Texas' corporate taxes. If you make $70,000 a year living in the region of Texas, USA, you will be taxed $8,387. Texas State Corporate Income Tax 2022 1.0 - Texas Corporate Income Tax Brackets Texas has Help us continue our work by making a tax-deductible gift today. Taxable income is the amount of income subject to tax, after deductions and exemptions. AMT exemptions phase out at 25 cents per dollar earned once AMTI reaches $539,900 for single filers and $1,079,800 for married taxpayers filing jointly (Table 4). 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