Accounting and Tax Advisers CPAs is here to help you understand the 2022 tax changes and how they might affect you.
Your taxes may look a little different in 2022. Many of these tax changes are a result of the pandemic and might qualify you to get more money back. To ensure your taxes are done correctly, contact the tax service professionals in Lombard – Accounting and Tax Advisers CPAs.
The Child Tax Credit
The American Rescue Plan widened the number of families eligible for the Child Tax Credit. This gave families half of their credit monthly between July and December and will distribute the rest as part of your tax refund. If you received any advance payments for the Child Tax Credit (CTC), you will need to complete a new tax document, IRS Letter 6419.
Because this credit was determined by your 2020 tax return, you may have to pay the money back if your marital status has changed or you are not claiming any dependents this year. This is because you received too much money from the advancement of the CTC. However, if you are considered a low-income household, the Safe Harbor Repayment Protection Provision prevents you from having to pay back the excess money.
Earned Income Tax Credit
This year, single filers with no children may be eligible for the Earned Income Tax Credit (EITC) even if their income was too high to claim this credit last year. Married individuals who file separately may also be eligible for the EITC due to the same reason.
Third Stimulus Check Stipulations
If your income has decreased, you might now be eligible for the third stimulus payment by claiming the Recovery Rebate Credit.
If you did receive the third stimulus payment, the IRS is mailing Letter 6475 by mid-February. This document will provide the information needed to file your taxes.
Tax Brackets and Tax Rates
In addition to the tax changes above, the IRS increased the income threshold for all seven federal tax brackets for the 2022 tax year to account for inflation.
Standard Deduction Increase
The standard deduction will increase by the following amount depending on your filing status:
- Single Filers – $12,950
- Married Filers, Filing Separately – $25,900
- Married Filers, Filing Jointly and Heads of Household – $19,400
- Over the Age of 65 or Blind – $1,400
- Unmarried and Not a Surviving Spouse – $1,750
Filing Tax Deadline
The deadline to file your taxes is now April 18th instead of April 15th. If you live in Massachusetts or Maine, the deadline is now April 19th.
Additional Information
If you are looking for more information about the 2022 tax changes or want to learn whether tax preparation fees are deductible, contact the professionals at Accounting and Tax Advisers CPAs.
Accounting and Tax Advisers CPAS in Lombard, IL, is here to help you make sense of all the new 2022 tax changes. Call our office today to speak with a professional at 630.932.9600 for a stress-free tax season.