SECURITY REMINDERS FOR TAXPAYERS
Again, we are warning taxpayers to learn to recognize and avoid phishing emails, threatening phone calls and texts from thieves posing as legitimate organizations such as your bank, credit card company and government organizations, including the IRS. Do not click on links or download attachments from unknown or suspicious emails. Also, hang up the phone if someone is claiming to be the IRS.The IRS does not call taxpayers.
REMINDER - Some refunds will be held until Mid - February
Taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit may experience a refund hold. According to the Protecting Americans from Tax Hikes (Path) Act, the IRS cannot issue these refunds before mid-February.
EDUCATIONAL TAX CREDITS
College credits - Please remember to bring your 1098-T statement with you along with any receipts for books, course materials and required equipment for this year’s tax filing, it will save you time and money. The 1098-T can also be found online in your student’s college account.
NEW Ohio Education Credits – Three new credits are available in 2021. Certain taxpayers who paid for (1) home school expenses, (2) donated to a scholarship fund, or (3) paid tuition to a nonchartered, nonpublic school may be eligible for these credits.
2022 TAX BRACKETS
- 10% for incomes of $10,275 or less (less than $20,550 for joint filers)
- 12% for incomes over $10,276 ($20,551 for joint filers)
- 22% for incomes over $41,776 ($83,551 for joint filers)
- 24% for incomes over $89,076 ($178,151 for joint filers)
- 32% for incomes over $170,051 ($340,101 joint filers)
- 35% for incomes over $215,951 ($431,901 for joint filers)
- 37% for incomes over $539,000 ($647,850 for joint filers)
Unemployment is fully taxable at the federal and state levels in 2021
CAPITAL GAINS RATES
0% for incomes of $41,675 or less ($83,350 or less for joint filers)
15% for incomes over $41,676 ($83,351 for joint filers)
20% for incomes over $459,751 ($517,201 for joint filers)
- The 3.8% surtax on net investment income stays the same for 2022. It kicks in for single people with modified AGI over $200,000 and for joint
DEPENDENT CARE CREDIT
The maximum expense claim is $3,000 for one person, or $6,000 for two or more people. The percentage of your qualified expenses you can claim ranges from 20% to 35%.
REQUIRED MINIMUM DISTRIBUTIONS
RMD’s are required to be taken at age 72.
RETIREMENT CONTRIBUTION LIMITS
401k - $20,500 (Extra $6,500 age 50+)
IRA - $6,000 (Extra $1,000 age 50+)
HSA - $3,650 single, $7,300 family
CHILD TAX CREDIT
In 2022, the child tax credit defaults back to $2,000 per qualifying child age 16 or under.
The credit for other dependents age 17+ will remain $500
NOTE: Child tax credit advances were not sent in 2022; the full $2,000 credit will be applied on your tax return.
MEDICAL EXPENSE THRESHOLD
For the 2022 tax year, the medical expense threshold will be 7.5% of AGI.
Here’s an example. Allie’s adjusted gross income is $100,000, she needs to be able to deduct more than $7,500 in medical expenses in order to be eligible for the deduction. Only expenses greater than $7,500 will count toward the deduction.
STANDARD DEDUCTION INCREASES
The 2022 standard deduction increases to the following:
- Single or Married filing separately – $12,950
- Married filing jointly or Qualifying widow(er) – $25,900
- Head of household (HoH) – $19,400
Note: married couples over 65 each receive an additional $1,400 deduction, $1,750 additional if single or HoH
- 58.5 cents per mile for business miles – (Jan 1 – Jun 30)
- 62.5 cents per mile for business miles – (Jul 1 – Dec 31)
- 18 cents per mile for medical miles – (Jan 1 – Jun 30)
- 22 cents per mile for medical miles – (Jul 1 – Dec 31)
- 14 cents per mile for charitable miles