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This article outlines the Tax Law Changes for Tax Year 2022. |
Tax Law Changes for 2022
Educator Expense Deduction
Increased to $300 ($600 if MFJ and both educators)
Standard Business Mileage Rates
58.5 cents per mile (Jan – June)
62.5 cents per mile (July – December)
Standard Deductions Adjusted For Inflation
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Provisions That Revert to Prior 2021 Rules
Child Tax Credit
Child tax credit reverts to the $2,000 maximum amount ($1,500 refundable Additional Child Tax Credit)
Qualifying children must be younger than 17 on December 31st of the tax year
Earned income requirement returns ($2,500)
Child and Dependent Care Credit
Reverts to nonrefundable credit status
Credit worth up to 35% of qualifying expenses for taxes with AGI under $15,000
Maximum qualifying expenses are $3,000 (one qualifying person), $6,000 (two or more qualifying persons)
Recovery Rebate Credit/Stimulus Payments
Not available for tax year 2022
Earned Income Credit
Age limits for taxpayers claiming EIC without children return to 25-65
Inflation Reduction Act Provisions That Apply To Tax Year 2022
Alternative Fuel Vehicle Refueling Property Credit (Form 8911)
Maximum credit $1,000 (personal residence), $30,000 (business)
Available for qualified alternative fuel vehicle refueling property installed tax years 2022-2032
Extended through tax year 2032
Plug-In Electric Drive Vehicle Credit (Form 8936)
New rules do not take effect until 2023
Manufacturing caps still exist
2024. |
Third-Party Network Transactions (1099-K) Reporting Requirements
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The IRS has delayed the
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1099-K reporting requirements for tax year 2022 and 2023 (see IR-2023-221)
Beginning with tax year 20232024, individuals who receive $600 $5,000 or more through a third party network transaction will receive Form 1099-K (this was intended to be 2022 but IRS has delayed to tax year 2023)
This includes apps such as Venmo, Uber, Lyft, Cash App, Zelle, PayPal, E-bay, etc.
Taxpayers must report Form 1099-K on their tax return as income if the funds were received for the sale of goods and services
If amounts on Form 1099-K are incorrect the taxpayer should contact the issuer
In 2025 taxpayers will receive a 1099-K for transactions totaling over $2,500
If taxpayer receives an incorrect 1099-K, they must contact the issuer, not the IRS
Standard Business Mileage Rate
67 cents per mile
Additional Child Tax Credit
Increased to $1,700
Standard Deductions Adjusted For Inflation
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Standard Deductions Tax Years 2024-2020 | |||||
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Filing Status | 2024 | 2023 | 2022 | 2021 | 2020 |
Single | $14,600 | $13,850 | $12,950 | $12,550 | $12,400 |
Married Filing Jointly | $29,200 | $27,700 | $25,900 | $25,100 | $24,800 |
Married Filing Separately | $14,600 | $13,850 | $12,950 | $12,550 | $12,400 |
Head of Household | $21,900 | $20,800 | $19,400 | $18,800 | $18,650 |
Qualifying Surviving Spouse | $29,200 | $27,700 | $25,900 | $25,100 | $24,800 |
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For a full list of limits and dollar amounts adjusted for inflation in tax year 20222024, refer to the Tax Toolkit. |
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