Important filing changes for the 2022 tax year

As we approach the 2022 tax season, it is important for individuals and businesses to be aware of the changes in filing and tax laws. The tax laws are constantly evolving and staying up-to-date can save you time and money when filing your taxes. Here are some of the important changes for the 2022 tax year that you should be aware of:

1. The standard deduction has increased for 2022. The standard deduction for individuals has increased from $12,400 in 2021 to $12,550 in 2022. For married couples filing jointly, the standard deduction has increased from $24,800 in 2021 to $25,100 in 2022.
2. The maximum contribution limit for 401(k) plans has increased. The maximum contribution limit for 401(k) plans has increased from $19,500 in 2021 to $19,000 in 2022. This means that individuals can contribute more money to their 401(k) plans, potentially saving more for retirement.
3. The child tax credit has increased. The child tax credit has increased from $2,000 in 2021 to $3,000 in 2022 for children under the age of 6 and from $500 in 2021 to $1,000 in 2022 for children under the age of 18. This means that parents can claim a larger credit for each qualifying child on their tax return.
4. The Social Security tax wage base has increased. The Social Security tax wage base has increased from $142,800 in 2021 to $146,600 in 2022. This means that individuals with earnings above the wage base will not be subject to the Social Security tax.
5. The maximum contribution limit for Health Savings Accounts (HSAs) has increased. The maximum contribution limit for HSAs has increased from $3,600 in 2021 to $3,650 in 2022 for individuals with self-only coverage and from $7,200 in 2021 to $7,300 in 2022 for individuals with family coverage. This means that individuals can save more money on a tax-free basis for medical expenses.

It is important to be aware of these changes and how they may impact your tax filing for the 2022 tax year. If you have any questions or need assistance with your tax filing, consider contacting a qualified accountant for guidance. With the right knowledge and support, you can ensure that you are taking advantage of all available tax benefits and saving as much money as possible on your taxes.