changes and updates Flashcards
New Standard Deduction 2022
12,950 for single filers ❖
$12,950 for married couples filing separately ❖
$19,400 for heads of households ❖
$25,900 for married couples filing jointly ❖
$25,900 for surviving spouses
The maximum Child Tax Credit 2022
The maximum Child Tax Credit is $2,000 per qualifying child and is not adjusted for inflation. The refundable portion of the Child Tax Credit is adjusted for inflation and will increase from $1,400 to $1,500 for 2022.
Child Tax Credit
The maximumChild Tax Creditis $2,000 per qualifying child and is not adjusted for inflation. Therefundableportion of the Child Tax Credit is adjusted for inflation and will increase from $1,400 to $1,500 for 2022.
Charitable contributions nonitemizers has not been extended
The taxpayer last year could have deducted their itemized deductions up to $600 (for MFJ) without itemizing. For the 2022 tax return, this deduction must go to Schedule A as part of itemized deductions. For 2022 the provision is absent, so the contributions generally would be limited to 60% of AGI.
The Renewable Energy Tax Credit is unlimited (there is no cap), and in addition to equipment, it includes labor on installations for the following:
solar energy systems (solar water heaters and solar panels and photovoltaic) geothermal heat pumps small wind turbines fuel cells biomass fuel stoves
MFS will be able to choose to be treated as not married to claim the EITC.
i
The spouse who claims the credit cannot file jointly with the other spouse and must have a qualifying child living with them for more than half the year. In addition, according to the IRS, they must either:
“Not have the same principal residence as the other spouse for at least the last six months out of the year; or
Be legally separated according to their state law under a written separation agreement or a decree of separate maintenance and not live in the same household as their spouse at the end of the tax year for which the EITC is being claimed.”
