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2022 Tax Year: (as of Jan 2022) Pearls and Pains
Since the Build Back Better Act is stuck in the Senate 2022 tax year has a few changes (unless Congress intervenes) there will be:
- No Stimulus payments
- No Advanced Child Tax Credit Payments.
- Child Tax Credit reverts to $2,000 per child under age 17
- Lower Earned Income Tax Credit
- No charitable Deduction on front of 2022 IRS Form 1040
- No home owners energy credit for installation of Energy Star Certified Windows, doors, insulation roof or heating and cooling equipment in primary residence.
- Increased standard Deduction Married Filing Joint=$25,900, Single=12,950 and Head of Household=19,400
- Long Term capital gains rate stay the same
- Increased 401K contributions 20,500 if over age 50 max is $27,000
- IRA contributions stay same 6,000 if under age 50 $7,000 if over age 50
- Teachers can deduct $50 more in classroom expense increased to $300 per teacher or $600 per return if both spouses are teachers
- Annual Gift Exclusion increased to $16,000 per person/$32,000 per couple
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