Federal Tax Law Changes for Tax Year 2022

Please see the following changes that may affect your tax situation.

  • Child tax credit (CTC):
    • Up to $2,000 per child under age 17.

  • Child and Dependent Care Tax Credit:
    • $3,000 for one child and $6,000, for multiple dependents and is no longer refundable.

  • Form 1099-K:
    • $600 Threshold to receive Form 1099-K
    • While the IRS says you shouldn’t receive Form 1099-K for personal transfers, experts say it’s possible, and the error may require you to contact the issuer or make adjustments to your tax return.
  • Charitable Deduction:
    • Must itemize to deduct Charitable Contributions.
  • Earned Income Credit:
    • Eligible taxpayers with no children will now only get $500.
  • Premium Tax Credit:
    • If you, or your spouse (if filing a joint return), received, or were approved to receive, unemployment compensation for any week beginning during 2021, the amount of your household income is considered to be no greater than 133% of the federal poverty line for your family size and you are considered to have met the household income requirements for eligibility for a premium tax credit. Keep any supporting documentation related to receiving or the approval to receive unemployment compensation with your tax return records.
  • Standard Deductions for 2022 are:
    • $12,950 Single/Married Filing Separately
    • $19,400 Head of Household
    • $25,900 Married Filing Jointly
  • 2022 Federal Income Tax Brackets:
Tip: If viewing on a phone, turn it sideways to get a full view of this table...
Rate Single Married
Filing
Jointly
Married
Filing
Separately
Head of
Household
10% $0 to $10,275 $0 to $20,550 $0 to $10,275 $0 to $14,650
12% $10,276 to $41,775 $20,551 to $83,550 $10,276 to $41,775 $14,651 to $55,900
22% $41,776 to $89,075 $83,551 to $178,150 $41,776 to $89,075 $55,901 to $89,050
24% $89,076 to $170,050 $178,151 to $340,100 $89,076 to $170,050 $89,051 to $170,050
32% $170,051 to $215,950 $340,101 to $431,900 $170,051 to $215,950 $170,051 to $215,950
35% $215,951 to $539,900 $431,901 to $647,850 $215,951 to $323,925 $215,951 to $539,900
37% $539,901 and over $647,851 and over $323,926 and over $539,901 and over

© Copyright 2023 LCS Tax Services - All Rights Reserved

LCS Tax Services BBB Business Review