Tax Season 2022: What You Need to Know

If you’re like us, you probably never want to think about 2021 again. But there’s a lingering ghost from last year that you need to get rid of before you can really get ahead – and those are your 2021 taxes.

Thanks to coronavirus (among other things) a lot has changed for the tax season of 2022. That’s why you need to start thinking about your tax situation right now while you still have time. beside. We want you to be prepared to settle your taxes before they process you. And to do that, we’ll find out what’s new for this tax season and which ones stay the same.

First things first, here are the key things you need to know right away for tax season 2021:

Tax Date is Thursday, April 15, 2022. You must file your 2021 tax return by this date!

The standard deduction for 2021 increases to $ 12,400 for applicants and $ 24,800 for married couples filing jointly.

The income tax framework increases in 2021 to explain inflation.

But that’s just the surface! Break down the details so you can pay your taxes with confidence this year.

Income Frames and Rates for Tax Season 2022

Here’s what’s new about how income frameworks and tax rates work: Your tax rate (the percentage of income that you pay in taxes) is based on the tax bracket (income range) in which you live. .

For example, if you’re single and your income is $ 75,000, you’re in the 22% tax bracket. But that doesn’t mean your tax rate is fixed at 22%. Instead, part of your income is taxed at 10%, another part is 12%, and the final part is 22%. (You can see the chart below to see all tax brackets with their respective tax rates.)

For tax year 2020, the tax rate remains the same – but there are some minor changes to the framework. Basically, the brackets have been adjusted by a few hundred dollars more from 2019 to take into account inflation

Tariff and marginal income tax framework for 2021

2021 Marginal Tax Rates Single Tax Bracket Married Filing Jointly Tax Bracket Head of Household Tax Bracket Married Filing Separately Tax Bracket
10% $0–9,875 $0–19,750 $0–14,100 $0–9,875
12% $9,875–40,125 $19,750–80,250 $14,100–53,700 $9,875–40,125
22% $40,125–85,525 $80,250–171,050 $53,700–85,500 $40,125–85,525
24% $85,525–163,300 $171,050–326,600 $85,500–163,300 $85,525–163,300
32% $163,300–207,350 $326,600–414,700 $163,300–207,350 $163,300–207,350
35% $207,350–518,400 $414,700–622,050 $207,350–518,400 $207,350–311,025
37% Over $518,400 Over $622,050 Over $518,400 Over $311,025

 

The standard deductions are higher in 2021

When you pay taxes, you have the option of taking your standard deduction or splitting it into each of your deductions. If you repeat, you will calculate each of your deductions. The rework is more complicated, but it will be worth it if your itemized deductions exceed the standard deductible amount.

For the tax year 2022, the standard deduction has increased slightly to adjust for inflation

Standard deduction

Filing Status 2020 2021
Single $12,200 $12,400
Married Filing Jointly $24,400 $24,800
Married Filing Separately $12,200 $12,400
Head of Household $18,350 $18,650

 

Remember that every situation is different whether you should take the standard deductible or if you should reduce it. Talk to a tax professional to find out what’s best for you.

Not sure if you want to take advantage of the tax offers this year or apply for yourself? Our easy tax test can help you figure out which option works best for you.

Tax deductions and credits to consider for Tax Season 2022

The things closest to the “magic word” when it comes to taxes are deductions and credits. Both help you keep more money in your pocket instead of Uncle Sam’s, but they do so in slightly different ways!

Tax deductions that help reduce your income are subject to federal income tax. Some deductions are only available if you choose to minimize your deductions, while others are still available even if you decide to take a standard discount.

Meanwhile, tax credits reduce your actual tax amount against the dollar, and there are two types of credit: refundable and non-refundable. If a credit is greater than the amount you owe and it’s a refundable credit, the difference is paid to you as a refund. Scored! But if it’s a non-refundable credit, your tax bill will drop to 0, but you won’t get a refund. That is still great!

Here are some of the deductions and credits you can claim on your 2021 tax return:

Charity Deductions

If you want to give like no one, we have some great news! In an effort to encourage more charitable contributions, the CARES Act allows you to deduct up to 100% of your adjusted gross income (AGI), which is your gross income minus any other deductions you make. currently, in eligible charitable contributions if you plan to document their deductions. 3

What if you are making a standard deduction? Well, the CARES Act added a new “on-the-fly” deduction that will help remove up to $ 300 in charity contributions you’ve made with cash.

Medical deductions

If you spent a lot of time in the hospital or found yourself with some hefty medical bills last year, you might be able to find at least some tax breaks.

You can deduct any medical expenses that are more than 7.5% of your adjusted gross income (AGI), which is your gross income minus any other deductions you have made.5 Example: If your AGI is $ 100,000, you can deduct expenses for medical expenses over $ 7,500 by 2021. But you must minimize your deductions to remove those expenses on your tax return.

Business deductions

If you’re a self-employed, you can claim multiple deductions on your tax return – including travel expenses and a home office deduction if you use part of your home to do business joint.

But if you are one of the millions of workers sent home to work remotely, you will not be able to claim a home office deduction as it is only for self-employed individuals. So sorry!

Income Tax Credit

The EITC is a refundable credit designed to help low- and middle-income workers (workers earning up to $ 56,844 in tax year 2021 may qualify). 7 Depending on your income, your filing status, and the number of children you have, credit can save you from a few hundred to several thousand dollars in your taxes. But here’s a crazy statistic: About a fifth of eligible taxpayers either claim no benefits from their taxes or don’t file at all.8 Don’t let it be you!

Child tax credit

Have a baby? Families can claim up to $ 2,000 for each eligible child with this tax credit (the income limit for this credit is $ 200,000 for single parents and $ 400,000 for married couples. ). And since it’s a refundable credit, your family can get a refund of up to $ 1,400 per child.9

And there are many other deductions and credits that can be taken depending on your situation! If you don’t want to miss out on any tax savings, you’ll want to work with a tax advisor who can make sure you don’t leave any deductions or credits on the board.

Coronavirus and your taxes

Oh, so you think you’ve got rid of the coronavirus now it’s 2022? Unfortunately, the coronavirus (and the government’s response to it) has created a ripple effect that you will feel when you sit down to file taxes for last year. Here are a few things to keep in mind:

Test for irritation

As part of the Coronavirus Act’s $ 2 trillion bailout package, economic security and relief (CARES), the government sent $ 1,200 in the form of stimulus checks to millions of Americans. soon after the pandemic closed most of the country.

The good news is that your stimulus checks will not count as taxable income. Instead, it is treated as a refundable tax credit for 2021. Translation: Your stimulus check is like an advance to the money you will receive as part of your tax refund in the year 2022.

Payroll Protection Program (PPP) Loans

The CARES Act has also tried to help struggling small business owners maintain their emergence by offering them Payroll Protection Program (PPP) loans. As long as these loans are used for certain business expenses – wages, rent or interest on mortgage payments, and utilities, such as some loans – loans This is designed to be “forgiven”.

But be aware, small business owners: The IRS says that any expenses you have paid out in money from those PPP loans cannot be deducted from your taxable income.12 Additionally, you will must apply for your loan cancellation application previously approved by the Small Business Administration you are stuck with the money you have borrowed. But since the SBA is processing $ 525 billion loan applications for the 5.2 million borrowers at the speed of an ankle sloth, we recommend not holding your breath.

Unemployment benefits

Many Americans find themselves out of work (at least temporarily) after the pandemic shut down a large portion of the economy and turned to unemployment insurance for help. People who received unemployment benefits will have to pay income tax on the amount.

If you chose not to withhold tax at registration, you will either have to pay estimated tax quarterly or set aside enough money from unemployment benefits to pay taxes before Tax Day.

Cost of Education: 529 Plan and ESA

Any money you withdraw from a 529 plan or an Education Savings Account (ESA) must be used for qualifying educational expenses for tax exemption. Meaningful. But many schools dropped out or canceled classes this year – which means your college may have returned some or all of your 529 or ESA. If so, you have 60 days to put the money back into your account or use that money to cover other education expenses. Otherwise, you may have to pay income tax and a withdrawal penalty.

There are also some new ways for you to use the 529 plans by 2021 without paying any taxes. First, you can now use the 529 plans to pay for the costs of certain apprenticeships – including fees, books, and supplies. And second, you can also use the money from the 529 package to pay off a student loan of up to $ 10,000 (that total is $ 10,000 – not annually) without having to pay any penalties or taxes. Come on.

Retirement plan: 401 (k) s, IRA and more

There are a lot of changes to your retirement plan in 2021 – and some of them could affect your tax bill this year. Let’s tackle each of those major changes:

The CARES Act allows people under 59 and a half to receive up to $ 100,000 out of their 401 (k) s and IRAs until the end of 2020 without having to pay an early withdrawal penalty.17 But first, withdraw Getting out of your retirement account before retiring is a terrible idea – get penalized or not. Second, the money you withdraw from tax deferred retirement accounts like a 401 (k) or a traditional IRA will be taxed like regular income, so be ready to pay taxes on any withdrawals you make. perform.

If you own a traditional IRA, you have to withdraw money from your account after reaching a certain age. Those withdrawals are called the required minimum distribution (RMD). The good news is that the SAFETY Act has pushed the age for RMDs from a traditional IRA from 70 1/2 to 72 (if your 70th birthday is 1 July 2019 or later) .18 On top of that, The CARES Act allows seniors to bypass RMD entirely by 2020 without penalty. That’s huge, because it can lead to significant tax savings for retirees with those accounts as money taken out of traditional IRAs counts as taxable income.

The SECURE Act also allows traditional IRA holders to continue depositing money into their accounts at the age of 70 1/2 starting in 2021.19 Since the money you put in a traditional IRA is tax deductible, you can reduce your income tax rate this year. Just remember: You will have to pay tax on that amount every time you take it out.

One last thing: If you have withdrawn some money from a 401 (k) or traditional IRA and you are facing a hefty tax bill, don’t panic! You have three years to repay those payments and get a refund of any taxes you paid on them.20 And more importantly, it will get you back on your retirement savings. Perhaps you should contact an investment professional who can guide you through the process.

Complete your tax right in 2022

If your taxes are incredibly simple and you want an easy-to-use tax software that makes filing your taxes easy, check out Ramsey SmartTax! Plus with Ramsey SmartTax, you’ll always know in advance how much money you owe when filing your tax return. No hidden fees, no ads, no games. That’s how it should be!

But what if you had a more complicated tax situation or had a wild year in 2021? In that case, working with a tax professional is a smart move. And if you’re looking for a reliable tax professional in your area, our Tax Local Providers (ELPs) have years of experience and can help you file with confidence. Find a tax specialist today!

ATTENTION S-CORPORATION OWNERS

New Book Reveals

S-Corporation Tax Benefits

Deductions & Strategies

…it is time to educate your CPA about these tax strategies

yes, I said it…

Boris Musheyev, CPA, CTC

From the desk of Boris Musheyev, CPA, CTC

New York City, NY

Dear Friend,

If you’d like save thousands of dollars on taxes using your S-Corporation tax entity… regardless of your industry, this is the most important letter you’ll read today.

I’ll show you in a minute

But First… A Disclaimer

Please understand that this book is tailor made for S-Corporation owners and even for someone looking to elect into S-Corporation tax entity.

This book is full of tax deductions, benefits and tax strategies for S-Corporations 

These additional deductions and tax strategies will save you thousands (if not tens or even hundreds of thousands) of dollars on taxes. 

EVERY. SINGLE. YEAR.

But…

If you don’t have a real business, no tax liability or you “hide” your income then this book is not for you. Don’t get it. 

All tax deduction and tax strategies in this book are legal and practical and each strategy can be referenced to the IRS Tax Code. 

There is no book out there like this one…

Good? Awesome, let’s get into it.

What’s In The Book

First of all, it is all 100% LEGIT.

S-Corp tax strategies in this book are court tested and IRS approved. 

This isn’t like any other tax book that you read.

It is super easy to read and understand. REALLY SIMPLE.

The reason why is because there ‘s no fluff or filler. It immediately gets down to brass tacks, showing you exactly what to do, how to do it and the potential tax savings.

At 40 pages, you can read it in the afternoon

If you use these tax strategies, I GUARANTEE you will save money on taxes.

Oh, did I mention, income shifting, salary reduction, retirement and even self-rental strategies?

The best part? You can use these strategies within 30 days or less!

I use these exact same strategies to generate thousands of dollars in tax savings for my clients and I do this day in and day out. 

Yes, my clients are using exact same strategies from this book… 

So like I said, you can start using these tax strategies within 30 days or less and start savings thousands of dollars in taxes.

Here’s fraction of what you are getting:

  • S-Corporation tax strategies that will reduce your tax bill, GUARANTEED!

  • How ​to create additional tax deductions in your business, LEGALLY, without spending an extra dime. See page 28 oh and more on page 32-35

  • How about writing off 100% of your beach home or ski cabin with no tax consequence? He he he, see page 36

  • ​​Do you own Real Estate and rent your S-corp to yourself? If yes, then you are missing out on this major tax strategy that could insanely reduce your S-corp income… See what it is on page 37

  • How to save money on Health Insurance and Retirement with EMPLOYEES. Yep, it is possible, see page 18, 19, 22 & 23

  • The one medical expense strategy that MOST S-Corp owners MISS when deducting medical expenses …and what to do instead. See Page 16

  • Tax Reform and S-Corp tax entity… very often not analyzed by even the very best. Page 12

  • Find out how you can shift some income to your kids. Why? Because they practically have NO tax bracket. Is this LEGAL? IRS tax code says it is… Page 27

  • Why your current CPA is missing out on these tax deductions and how it is costing you tens of thousands of dollars in taxes. EVERY. SINGLE. YEAR.

And much, much, more!

But here is what you’ll love the most,

Growing Retirement Income 

Using IRS’s Money

What if I told you, that you can beat IRS at it’s own game, LEGALLY?

First, you will use the tax code to your advantage by using S-Corp Strategies from this book

Then, save thousands (if not tens or even hundreds of thousands) of dollars on taxes

Take a fraction of those savings, and I mean a fraction

Invest it into a retirement account that works BEST with S-Corps (yep, this is in the book)

Earnings can grow to hundreds and even millions of dollars before your retirement age

The best part? You used IRS’ money using S-Corp tax strategies for this book

Without sacrificing your current lifestyle and you are using IRS money to create wealth.

This my friends, is called LEVERAGE

  • Once implemented, your S-Corp tax strategies will be on auto pilot generating you thousands (if not tens or hundreds of thousands) of dollars on taxes every single year.

  • Money can be invested in your retirement, Real Estate or other type of investments. 

  • Have peace of mind knowing that you can actually save money on taxes, regardless of what your accountant says

Next Steps…

You’ll get an instant download of this book for the “cost” of $19

As soon as you place the order, you will get a confirmation receipt with a link to download the book

You can access it anywhere and on any device, immediately

Nope, There Is No Catch!

If you are wondering what’s the catch being this book is inexpensive but yet so amazing?

There is no catch. Simple

I will not sell you on a course or a training to walk you through this book

It is an easy to read and easy to understand book

Heck, you can start using the secrets and tax strategies from this book within 30 days or less!!!

There is no monthly hidden fee or some-kind of a “tax program” to sign up for

I promise you, this is it, it is just $19

My hope is that you’ll love the content, realize it’s value and the value I bring to my clients

And this could be the start of a good business relationship for years to come

But with all that said, there is ONE thing to keep in mind:

Time Is of The Essence

Here’s why

I take a loss by selling you this book at this price

The reason why is because it costs me around $30 in advertising costs to sell one book

So why would I do that?

Simple.

I want to create a great impression on you and my hope is that you will be impressed with what I am giving you today and you’ll want to do more business with me in the future

I promise you, you’ll love this S-Corp tax book, it’s tax secrets and tax strategies that you’ll end up calling my office to work with us

Pretty straightforward.

But… this is a limited offer and might not be available tomorrow

So take it while you can

And of course there’s a money-back guarantee.

100% Money Back Guarantee

I, Boris Musheyev, 100% Guarantee that you’ll love this book or I’ll return the $19 and you can keep the book.

No joke. No fluff.

Just email me or call the number on your receipt and we’ll refund you 100%

This Really Is A Limited Offer So Claim 

Your Copy Today

Thank you for taking the time to read this letter and I look forward to speaking with you soon.

Sincerely,

Boris Musheyev, CPA, CTC

P.S. In case you are the type who scrolls down to the bottom of the page (like me)

Here’s the summary:

I’m offering you this book with S-Corporation benefits, deductions and tax strategies that I use for my own clients to save tens of thousands of dollars on taxes EVERY. SINGLE. YEAR. …even if you have an experienced CPA. 

The book is $19.

What’s great about this book is it doesn’t require you to know any technical knowledge, (we’ll let your CPA handle that part). 

But, what this book will do for you is let you start saving money on taxes using these tax strategies in your S-Corp business.

This is a very limited offer.

There is no “catch” to this offer. I will not offer or up-sell you on any courses or monthly commitments. 

In fact, if you don’t like the book I’ll refund you back the $19. You don’t even need to send the book back.

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