There will be several changes when filing your 2022 taxes. Some of the changes will increase your taxes due for 2022. If you received a refund last year, you may not receive one this year due to the following taxing updates:
The child tax credit is $2,000. for a qualifying child. It was $3,600. in 2021.
The maximum credit for childcare expenses for 2022 is $3,000. for one child; $6,000 for two or more dependents.
The maximum Earned Income Credit for 2022 is as follows:
No Children $560. Decreased $942.
1 Child $3,733 Increased $115.
2 Children $6,164 Increased $184.
3+ Children $6,935 Increased $207.
The deduction for charitable giving for non-itemizers is NOT available in
2022.
The Standard deduction has increased per status in 2022 as well as mileage
rates, however, the mileage rate is split:
January – June $.58.5
July – December $.62.5
Something NEW this year is the issuance of Form 1099-K. All third party payment services (Amazon, Etsey or eBay, etc) will be sending out these forms for any activity over $600. The IRS is now able to capture unreported business transactions such as reselling tickets and merchandise online. If you get one of these forms, you are now in business and income and expenses need to be reported. Good documentation of expenses will be needed.
Another new feature is increased tracking of virtual currency transactions. This tracking will be reported to the IRS by brokers and dealers in 2023. Some have implemented these changes in 2022, therefore, they will need to be reported for 2022.
REMEMBER THAT ALL TAX INFORMATION YOU RECIEVE
THE IRS GETS A COPY ALSO
I suggest that you keep a folder for ALL tax documents that you receive including copies of digital forms obtained electronically in JANUARY and early FEBRUARY. This folder will come in handy when you file your 2022 returns.