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Top tax credits and deductions for the 2022 filing year: Individuals
Here are some of the top tax credits and deductions for individuals to consider for the 2022 filing year
As the 2022 tax filing deadline approaches, many individuals are looking for ways to reduce their tax burden and maximize their savings. One way to do this is by taking advantage of tax credits and deductions, which can reduce the amount of tax you owe or increase your tax refund.
Here are some of the top tax credits and deductions for individuals to consider for the 2022 filing year:
- The earned income tax credit (EITC) is available to low- and moderate-income taxpayers who have earned income from employment or self-employment. The amount of the credit varies depending on your income and number of qualifying children, but it can be worth up to $6,660 for the 2022 tax year.
- The child and dependent care credit can help offset the cost of caring for a child or dependent who is under the age of 13 or unable to care for themselves. The credit is worth up to $3,000 for one qualifying individual or $6,000 for two or more.
- The American opportunity tax credit (AOTC) is available to students or their parents who are paying for college expenses. The credit can be worth up to $2,500 per eligible student and can be claimed for the first four years of post-secondary education.
- The lifetime learning credit is another education-related tax credit that is available to students or their parents. It can be worth up to $2,000 per tax return and can be claimed for an unlimited number of years.
- The mortgage interest deduction allows homeowners to deduct the interest paid on their mortgage from their taxable income. The deduction is limited to the first $750,000 of mortgage debt for the 2022 tax year.
- The charitable donation deduction allows taxpayers who itemize their deductions to deduct the value of their charitable donations. The deduction is limited to 60% of your adjusted gross income for the 2022 tax year.
It's important to keep in mind that these are just some of the many tax credits and deductions available to individuals for the 2022 tax year. To maximize your savings and ensure that you're taking advantage of all the deductions and credits you're eligible for, it's always a good idea to consult with a professional accountant or tax advisor.
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