Also, eligibility was expanded to include taxpayers between age 19 – 25 and who are over age 65. Under the American Rescue Plan, the Earned Income Tax Credit was expanded to workers without kids and nearly tripled the maximum credit. The credit is available if you earn up to $200,000 as single taxpayer or head of household (or up to $400,000 if you are a married couple filing jointly).There were no advance payments issued for tax year 2022.No longer fully refundable but is refundable up to $1,400.Each dependent child must be under age 17.American Rescue Plan Provisions Child Tax Creditįor tax year 2021 taxes only (the ones filed in 2022), the age limit and the amount of the Child Tax Credit (CTC) increased and it was fully refundable – meaning you were eligible for the benefits even if you didn’t owe taxes.įor tax year 2022, the Child Tax Credit reverts to the benefits available prior to the American Rescue Plan as follows: Below we will cover what the changes may mean for you and your tax return. Because some of these tax benefits are either reverting or going away some may see lower tax refunds than they saw in tax year 2021 if they were eligible for some of the credits under the American Rescue Plan. What are the tax implications of some 20 22 tax law changes ?įor tax year 2022 key tax benefits are changing or reverting to Pre-American Rescue Plan tax rules. While for heads of households, the standard deduction will be $19,400, up $600. The standard deduction is adjusted for inflation and for single taxpayers (and married individuals filing separately), increased $400 from the previous year and rose to $12,950 ($25,900 for those married filing jointly). What is the standard deduction for 20 22 tax returns? *For tax year 2022, Emancipation Day falls on Monday, so the tax day gets pushed due to the holiday to Tuesday, April 18th. For example, the due date for federal income tax returns is May 15 for residents of certain areas in California, Georgia, and Alabama that were affected by the recent storms. People who live in areas that were affected by natural disasters may also have later deadlines. Federal income taxes are due on Tuesday, April 18, 2023, because April 15 falls on the weekend and the Emancipation Day holiday in Washington, D.C. The deadline for filing your 2022 is midnight on April 18, 2023, unless you file for an extension. IRS e-file opened on January 23rd, so you can start filing today! When is the deadline for filing my 20 22 tax return? TurboTax is open and ready to help you prepare your tax return. When can I file my 20 22 tax return? (the taxes you file in 20 23 ) Once we have those out of the way, we can dig into some of the topics related to the events that occurred in 2022 and the tax implications like deductions for charitable contributions, medical expenses, and changes to some credits. You can also just meet with a TurboTax Live Full Service tax expert who can prepare your taxes in one video meeting while they prepare your taxes.įirst, let’s get some basics out of the way like when you can file your return, when is the filing deadline for your 2022 tax return, and what the standard deduction is for this year. If you have questions about anything below, you can connect live via one-way video with a TurboTax Live tax expert to get help along the way and have your taxes reviewed before you file. You also don’t need to remember all of this when you file your tax returns. We are here to break down the key tax law changes and what you need to know to help you understand the impacts to your taxes and guide you to filing your taxes this year. Most of the provisions under the Inflation Reduction Act go into effect for tax year 2023, but there are some provisions that impact your tax year 2022 taxes. In August 2022 President Biden also signed the Inflation Reduction Act of 2022 into law, with new tax provisions, extensions and expansions of tax benefits related to energy efficiency, healthcare, and corporate tax. The plan included a third round of stimulus relief and expanded tax benefits that families could claim on their 2021 taxes (the taxes filed in 2022), however these tax benefits will either revert to what they were before the American Rescue Plan or expire. On Mathe American Rescue Plan was signed into law to provide financial relief for millions of Americans. This tax season, there are changes to tax laws that may impact your federal tax return.
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