Financial relief and temporary changes are slowing down or reverting to pre-pandemic status. There are also shifts in the standard deduction amounts and income tax brackets, which happen annually. If you haven’t filed your 2022 taxes yet, here are some of the biggest changes you need to know.

Standard Deductions

Your standard deduction is the amount of income you don’t owe any federal income tax on. With a higher standard deduction in 2022, you may owe less if your income doesn’t increase by 7% or more.

• For single people and married couples filing separate returns, it increases to $12,950.


• For married people filing jointly, it increases to $25,900


• For heads of household, it increases to $19,400.

Child and Dependent Tax Credits

• Filers that qualified for a $3,600 per dependent in 2021 will get a credit of $2,000 in 2022 for each qualifying child under age 17, or less, depending on their income.


• The Child and Dependent Care Credit will return to a maximum of $2,100.

Earned Income Tax Credit

• Taxpayers with no children who claim the Earned Income Tax Credit will get $500 in 2022, revised from $1500 in 2021.

Now that you know the major changes that could affect you for the 2022 tax year, here are some of our tips for making your filing easier:

• Create or access your account information at IRS.gov/account.


• Gather and organize all tax documents.


• Check and renew your Individual Taxpayer Identification Number (ITNI) if you don’t have a Social Security number.


• File for free if you qualify for the IRS’s Free File program.


• File electronically with direct deposit to speed tax refunds.


• Bookmark IRS.gov resources and tools on your web browser for future reference if needed.

 

The deadline for filing your 2022 taxes is April 18, 2023.

 

Our Financial Health Centers specialize in helping people build and maintain financial slack. While we may not be tax experts, we are here for you by connecting you with local resources in the communities we serve. This is just one of the many ways we can help.