Get ready for the 2022 Tax Filing Season!
As COVID-19 becomes a thing of the past so will their tax breaks.
Be aware of the following changes for the 2022 Tax Filing Season:
Child Tax Credit:
- For 2022, parents can claim a maximum child tax credit of $2,000 for each child through age 16 if you meet adjusted gross income requirements.
- This is reduced from $3,600 for every child under age 6 and up to $3,000 for children ages 6 through 17.
Child and Dependent Care Credit:
- You may claim 35% on up to $3,000 in expenses for one person, or up to $6,000 of expenses for two or more people and is a non-refundable credit.
- This is reduced from 50% on up to $4,000 in expenses for one person or up to $16,000 for two or more and the credit was fully refundable.
Charitable Deductions:
- For tax year 2020 and 2021, taxpayers were allowed to take what is called an above-the-line deduction ( a deduction that allows a taxpayer to subtract the charitable contribution off their adjusted gross income, $300 for single/$600 for filing jointly).
- The above-the-line deduction has expired for tax year 2022.
Earned Income Credit:
- This credit allowed taxpayers without children to claim $1,502 in 2021 as a result of a one-year enhancement that was part of the American Rescue Plan.
- For tax year 2022, the size of credit for someone in this group is $560.