Planning ahead.. changes for next year to think about here some changes to review:

Tax Changes and Key Amounts for the 2022 Tax Year

Child Tax Credit back to $2000 per child under 17

Child and Dependent Care Tax Credit Non Refunable credit in 2022!! Only 3000 credit for one child and max $6000 for two kids.

Earned Income Tax Credit change in eligibility

Recovery Rebate Credit-no stimulus payments in 2022 so goes away.

Long-Term Capital Gains Tax Rates-Income rate changes

Standard Deduction-increase married $25,900, single $12950, head of household $19,400

1099-K Forms- venmo and cash app transactions will receive one for goods or service over $600.

Charitable Gift Deductions-expires as 2021 tax year.

Teacher Expenses-limit to $300 per person $600 married couple.

Adoption of a Child-increase $14890 for eligib;e expenses.

Standard Mileage Rates-increase to 58.5 cents a mile, medical increase to 18 cents a mile, charitable remains same at 14 cents a mile.

Long-Term Care Insurance Premiums-reduce deduction on premiums.

Health Savings Accounts (HSAs)-increase for single $3650 and married $7300

Current list of credits set to expire unless congress extends

Mortgage insurance premiums deduction

Nonbusiness energy property credit for certain energy-saving improvements to your home (e.g., new energy-efficient windows and skylights, exterior doors, roofs, insulation, heating and air conditioning systems, water heaters, etc.);

Self-Employed People- the 20% deduction for pass-through income was increased for 2022. Self-employed people (along with owners of LLCs, S corporations and other pass-through entities) can deduct 20% of their qualified business income, subject to limitations for individuals with taxable incomes in excess of $340,100 for joint filers and $170,050 for others ($329,800 and $164,900, respectively, for 2021).

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