Here are some significant changes to keep in mind as you prepare your 2022 taxes:

February 26, 2023

In less than 60 days before the tax deadline, there will be multiple modifications that taxpayers should take note of. These adjustments encompass alterations in the cutoff date for filing this year's tax returns and the expiration or reduction of any tax benefits.

Many taxpayers may be shocked to learn that their 2022 refunds would be less due to several changes. Depending on their unique circumstances and what they did with their withholdings, some people who had been anticipating a refund could find that they owe money for 2021.

One of these changes is that the basic standard deduction amounts for 2022 are greater. It is typically $12,950 for singles or married people filing separately $25,900 for joint filers or a qualifying surviving spouse, and $19,400 for the head of household. There are additional amounts for individuals 65 and older, for blindness, and for certain other reasons.

In addition, the filing deadline this year is Tuesday, April 18, 2023, because April 15th falls on a Saturday this year and the following Monday is the Emancipation Day holiday in Washington, D.C.

Furthermore, the IRS announced on February 24, 2023 , that disaster-area taxpayers in parts of California , Alabama, and Georgia now have until October 16, 2023, to file various federal individual and business tax returns and make tax payments. Previously, the deadline for these areas had been pushed back to May 15. Visit IRS.gov/Extensions for information on how to get six-month filing extensions.

If you have suffered a casualty loss as a result of a nationally declared disaster , you can deduct it from your tax return for that tax year—or the tax year immediately preceding the disaster year. According to Eric Smith , an IRS spokesman, you should consider filing an amended return if it's more efficient to deduct it for the previous year and you have already filed for that year.

Additionally, the child tax credit is significantly less generous in 2022 than in 2021 because certain enhancements were not extended for 2022. The credit amount for 2022 is $2,000 for each qualifying child under the age of 17. This is a reduction from the credit of $3,600 for children aged five and under and $3,000 for children aged six to 17. Other changes include lower amounts for the child- and dependent-care tax breaks.

Individuals who opted for the standard deduction while filing their tax returns in 2020 or 2021 were eligible to receive a tax deduction of a maximum of $300 for cash contributions made to charitable organizations. This deduction was not open to taxpayers who claimed itemized deductions on Schedule A. Nonetheless, the $300 deduction was not extended beyond 2021. Therefore, if you select the standard deduction when filing your 2022 tax return, you cannot claim a tax deduction for charitable contributions. From 2022 and going forward, the only approach to claim a tax write-off for donations made to charity is through itemizing deductions.

Moreover, the IRS stated that it will not challenge the taxability of payments "related to general welfare and disaster relief" from the following states: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, and Alaska. Furthermore, the IRS stated that several individuals in Georgia, Massachusetts, South Carolina, and Virginia won't include state payments in their federal tax returns "if they meet certain requirements."

Next, the threshold for the amount of your income that is subject to Social Security tax increased to $147,000 for 2022, compared to $142,800 in 2021. (It's $160,200 for 2023. ) Check to see if your total wages from all of your employers exceeded $147,000 last year. The maximum Social Security tax withheld should have been $9,114 (6.2% of $147,000). If your withholdings exceeded that, the IRS says you may be eligible for a credit on your return for the excess amount. If any one employer withheld too much Social Security tax, "you cannot claim the excess as a credit against your income tax," according to the IRS. Your employer should make the necessary adjustments for you. If your employer does not adjust the Social Security tax overcollection, you can use Form 843 .

In summary, staying informed about changes in tax laws and regulations and seeking expert advice can help you navigate the complex tax landscape and make sound decisions about your financial future.

Joel Gabai

Income Tax Intern at Baker Tilly US, LLP

Professional Accountancy Major & Information Systems Minor

California State University, Northridge