What Has Changed for the 2022 Tax Season?

By NexGen Support Team

January 22, 2023

There Are a Few Changes for the 2022 Tax Season That Individuals and Businesses Should Be Aware Of:

  • Increase in the standard deduction: The standard deduction for the tax year 2022 has increased for all filing statuses. For example, the standard deduction for single filers will be $12,550, up from $12,200 in 2021.
  • Changes to itemized deductions: The Tax Cuts and Jobs Act (TCJA) made changes to itemized deductions starting in 2018. For the tax year 2022, the State and Local Tax (SALT) deduction is limited to $10,000. Additionally, the mortgage interest deduction limit is reduced to $750,000 for mortgages taken out after December 15, 2017.
  • Increased child tax credit: The child tax credit for the tax year 2022 has increased to $3,000 per child under age 17, up from $2,000 in 2021.
  • Extension of certain COVID-related tax breaks: Some tax breaks that were put in place to help individuals and businesses during the COVID-19 pandemic have been extended for tax year 2022. For example, the employee retention credit and the paid sick and family leave credit have both been extended.
  • Changes to the earned income credit: The earned income credit has been expanded for the tax year 2022, with higher income limits and larger credit amounts for families with three or more children.
  • It is important to note that these changes may be subject to change based on legislative actions. It’s always best to consult with a tax professional for the most accurate and up-to-date information.