Even though tax filing season is still months away, this is actually a great time of year to start thinking about next year’s return. After all, the more tax planning you do, the more money you may be able to save. And if you see something now that can reduce your 2022 tax bill, there’s still plenty of time to act before the year runs out. But proper tax planning requires an awareness of what’s new and changed from last year — and there are plenty of tax law changes and updates for the 2022 tax year that savvy taxpayers need to know about.
Big tax breaks were enacted for the 2021 tax year. But most of those tax law changes expired at the end of 2021. As a result, the child tax credit, child and dependent care credit, earned income credit and other popular tax breaks are different for the 2022 tax year than they were for 2021. The Inflation Reduction Act might impact your 2022 tax return, too. Other 2022 tweaks are the result of new rules or annual inflation adjustments. But no matter how, when or why the changes were made, they can hurt or help your bottom line — so you need to be ready for them.
In this article, Kiplinger pulled together a list of 29 important tax law changes and adjustments for 2022 (some related items are grouped together) on the following topics:
- Child Tax Credit
- Child and Dependent Care Tax Credit
- Earned Income Tax Credit
- Recovery Rebate Credit
- Premium Tax Credit
- Tax Brackets
- Long-Term Capital Gains Tax Rates
- Standard Deduction
- 100-K Forms
- Charitable Giving Deductions
- Retirement Savings
- Adoption of a Child
- Student Loan Interest Deduction
- Teacher Expenses
- Kiddie Tax
- Residential Clean Energy Credit
- Clean Vehicle Credit
- Bonds Used for Education
- Parking and Transportation Benefits
- Americans Working Abroad
- Payroll Taxes
- Standard Mileage Rates
- Long-Term Care Insurance Premiums
- Health Savings Accounts (HSAs)
- Flexible Spending Accounts (FSAs)
- Alternative Minimum Tax (AMT)
- Tax “Extenders”
- Self-Employed People
- Estate and Gift Taxes
Click HERE to access this timely tax planning information.
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**Zandbergen Group and its advisors do not provide legal, accounting, or tax advice. Consult your attorney or tax professional. Representatives have general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration.