NEWS & UPDATES IN THE ACCOUNTING WORLD
Peruse our News section below filled with helpful tips regarding your financing, company updates and industry resources. Doing our job well doesn’t end at handling accounts and managing finances - it extends past the office and into the trends, changes and news in the finance industry. We’re especially proud of staying up to date on new ways to help our clients manage their money, and we will always share thoughts and updates with visitors and customers to ensure they’re in the loop too.
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Child Tax Credit:
Child Tax Credit is staying the same, at $2000 per child 17 and under.
Earned Income Credit for one child is $3,733, for two children, it is $6,164, and for two or more, it’s $6,935.
Child-tax-credit eligibilities are the following:
1. The child must be a U.S. citizen, national or resident alien
2. Must have a Social Security number.
3. Must be claimed as a dependent on your 2022 tax return.
4. Must be related to you.
5. Must live with you for at least six months during the year.
Child-tax-credit eligibilities are the following:
1. The child must be a U.S. citizen, national or resident alien
2. Must have a Social Security number.
3. Must be claimed as a dependent on your 2022 tax return.
4. Must be related to you.
5. Must live with you for at least six months during the year.
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Who Must File a 2022 Tax Return?
Single: Must file if gross income is at least $12950.
Married filing Jointly: If gross income is at least $25,900.
Head of Household: If the gross income is at least $19,400.
For Married filing Separately: If gross income must be $12,950.
What can be itemized?
If you qualify for itemized as opposed to standard deduction you could claim the following:
Medical Deductions:
Medical expenses if more than 7.5 percent of your AGI are deductible as itemized deductions.
You could claim medical expenses paid for the spouse or any other dependent claimed on the tax return.
Taxes:
Beginning in 2018 the TCJA limited the deductible portion of taxes paid on your W2 as state tax withholding, property tax on your vehicles, and real estate property tax to $10000.
Mortgage interest:
Mortgage interest is deductible to indebtedness of $750000. The points paid on loans to finance the purchase of a main home are deductible.
Charitable contributions:
Any charitable contributions to the following organization are deductible.
Synagogues, temples, mosques, nonprofit schools, hospitals, public parks, recreation facilities, public charities such as Salvation Army, Red Cross, Care, Goodwill industries, United Way, War veterans’ groups.
Casualty Losses:
Personal Casualty and theft losses are deductible if attributable to federally declared disaster. Federally declared disaster is a disaster that occurred in an area directed by the President to be eligible for federal assistance.
Gambling Losses:
Gambling losses can be claimed up to the amount of gambling winnings
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The following Items are no longer itemizable deductions:
Appraisal Fees, Casualty and theft losses from property used in performing services as an employee, clerical help, and office rent for maintaining investments, employee business expenses, fees to collect interest or dividends, hobby expenses, job hunting expenses, job related educational expenses, legal fees for collecting or producing taxable income, loss on deposits in an insolvent or bankrupt financial institution.
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Standard Deduction:
Married filing Jointly: $25,900.
Married filing Separately: $12,950.
Head of Household: $19,400.
Single: $12,950.
Standard Mileage Rates:
Business 58.5 cents a mile Jan to June 2022.
Business 62.5 cents a mile July to December 2022.
Medical/Moving 18 cents a mile Jan to June 2022.
22 cents a mile July to December 2022.
Charitable 14 cents a mile
Simple IRA Plan:
If over age 50 you can contribute up to $27,000.
If under age 50 you can contribute up to $20,500.
The tax brackets are also staying the same this year, ranging from
10% to 37%.
Health Savings Accounts (HSAs) the contribution limit is $3650 for self- only coverage.
$7300 for family coverage.
Profit Sharing Plan and SEP contribution limit is $61000.
Maximum earnings subject to social security tax is $147,000.