Now that 2022 has arrived, there are some changes the IRS made that effect your taxes for 2022. The standard deduction has increased to $12,550 for single individuals and $25,100 for married filing jointly. The standard deduction for head of household is $18,800 and married filing separate is $12,550. There is still a nonitemizing deduction of up to $300 of cash donations ($600 for married couples filing jointly) through 2022. Retirement account contribution limits increase to $20,500 plus an additional $6,500 for people over 50 years of age.
In addition, taxpayers will need to inform your preparer the amount of 2021 recovery rebates and child tax credits received in 2021. The IRS sent recovery rebates of $1,400 in February 2021 to most individuals as well as 50% of the child tax credit beginning in July 2021. The other 50% child tax credit can be claimed on your 2021 tax return.
With these recent changes to the tax-code, the professionals at Buseck, Barger, Bleil & Co., Inc. will guide you through your tax returns seamlessly and help you take advantage of these new tax changes.