What’s new for 2022 taxes?
There are a few changes for 2022 taxes that might affect your tax refund or liability this year. These changes will lower your tax refund drastically compared with the previous tax year. The following are a few to mention (from the IRS):
1. Lower amount for the Child Tax Credit (CTC): The Child Tax Credit (CTC) went back to 2019 levels. This means this year you will only receive $2,000 per dependent child, if eligible, instead of $3,600 in 2021.
2. Changes for the Earned Income Tax Credit (EITC):
Taxpayers with no children: The credit went back down from $1,500 in 2021 to $500 in 2022.
Taxpayers with children: The maximum credit for qualifying taxpayers who have three or more qualifying children went up a bit from $6,728 in 2021 to $6,935 in 2022. There is a table providing maximum EITC amounts for other categories, income thresholds and phase-outs (will be posted on a different blog).
3. Lower amount for the Child and Dependent Care Credit: The credit went back to a maximum of $2,100 in 2022 instead of $8,000 in 2021.
4. No above-the-line charitable deductions: Eligible taxpayers who claimed a $600 charitable donation tax deduction on their 2020 and 2021 tax returns during COVID will no longer be able to take this above-the-line deduction if they take the standard deduction.
5. More people may be eligible for the Premium Tax Credit: Taxpayers with health insurance from the marketplace may still be able to qualify for temporarily expanded eligibility for the Premium Tax Credit.
6. Tax credit for clean vehicles: “If you buy a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax credit of up to $7,500” (if you meet the requirements), the IRS.
You may get a significant lower refund due to these changes in 2022. Would you like to know how much you are getting before filing your tax return? Get your FREE Federal estimate from us.
Get in touch with us! Let us fix your tax problems! You can call/text us at (347) 720-2224 or email us your concerns at contact@ztaxllc.com. Follow us on social media.
