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HomeTaxNew tax legal guidelines and different tax modifications for 2022

New tax legal guidelines and different tax modifications for 2022


It’s a brand new 12 months and meaning new tax legal guidelines and different tax modifications. Beneath are modifications that take impact this 12 months, together with different tax planning data.

Submitting deadlines

First off, the deadline to file particular person tax returns is April 18. Different deadlines are:
January 17, 2022: 4th quarter 2021 estimated tax fee due
March 15, 2022: Partnership and S company returns for calendar 12 months 2021
April 18, 2022: 1st quarter 2022 estimated tax fee due
April 18, 2022: Final day for people to make a 2021 IRA contribution and C company tax returns for calendar 12 months 2021
Could 16, 2022: Not-for-profit returns for calendar 12 months 2021
June 15, 2022: 2nd quarter 2022 estimated tax fee due
September 15, 2022: third quarter 2022 estimated tax fee due
October 15, 2022: Prolonged particular person tax returns due
January 15, 2023: 4th quarter 2022 estimated tax fee due

Tax brackets and different inflation-adjusted numbers

For all of the 2022 inflation-adjusted tax brackets and different inflation-adjusted numbers, see the official inflation-adjusted tax fee schedule and different key tax figures for 2022 throughout the Checkpoint platform.

Reporting by third get together settlement organizations

Congress has tightened the de minimis exception to tax reporting by third-party settlement organizations (TPSOs, e.g., PayPal, Venmo, Zelle) by requiring reporting of transactions that exceed $600 (and eliminating the 200-transaction threshold). The American Rescue Plan Act (ARPA) additionally clarified that TPSO reporting obligations are restricted to transactions involving items and companies. Which means that, starting in 2022, should you run a enterprise the place prospects pay you by way of a TPSO, and also you obtain greater than $600 in whole throughout the course of the 12 months by way of a TSPO, the TSPO is required to report that quantity to the IRS – no matter what number of prospects are paying you – and to ship you a Kind 1099-Ok, Cost Card and Third Celebration Community Transactions.

Charitable deductions

The Taxpayer Certainty and Catastrophe Tax Reduction Act of 2020 prolonged two charitable giving modifications enacted by the Coronavirus Support, Reduction, and Financial Safety (CARES) Act. The legislation lets you deduct as much as 100% of your adjusted gross earnings (AGI) in certified charitable donations should you plan to itemize your deductions. Nonitemizers, i.e., these taking the usual deduction, could declare an above-the-line deduction of as much as $300 ($600 for married submitting collectively) for charitable contributions made in money.

Little one tax credit score

The massive change in 2022 is that each the superior fee of the youngster tax credit score (CTC) and the prolonged CTC involves an finish in 2022. For extra particulars, see IRS to mail data letters to advance youngster tax credit score recipients inside Checkpoint.

However the results of the advance fee of the CTC throughout 2021 will nonetheless be round in 2022. Households who acquired advance funds might want to evaluate these advance with the quantity of the CTC that they will correctly declare on their 2021 tax return. Taxpayers who acquired lower than the quantity for which they’re eligible can declare a credit score for the remaining quantity of CTC on their 2021 tax return. Taxpayers who acquired greater than the quantity for which they’re eligible could have to repay some or all the extra fee once they file.

To find out if a taxpayer has to repay some or all the extra funds, see the IRS FAQs on Reconciling Your Advance Little one Tax Credit score Funds on Your 2021 Tax Return inside Checkpoint.

The IRS will ship Letter 6419 with the entire quantity of advance CTC taxpayers acquired in 2021. Individuals ought to preserve this and some other IRS letters about advance CTC funds with their tax information.

Stimulus funds and restoration rebate credit score

In the event you didn’t qualify for the third financial influence payment-commonly known as a “stimulus verify”-or didn’t get the complete quantity, you may be eligible for the Restoration Rebate Credit score. You’ll have to file a 2021 tax return, even should you don’t normally file, to say the credit score. The IRS will ship Letter 6475 in early 2022, which comprises the entire quantity of the third stimulus fee.

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