Several COVID-19 related tax provisions are set to expire for the 2022 tax year:
- Enhanced Child Tax Credit (reverts back to $2,000 per eligible child under age 18)
- Enhancements to the Dependent and Child Care Credit
- Expansions to the Earned Income Tax Credit
- Charitable deduction for non-itemizers
Key Rates and Figures – 2022
Standard Deduction
- Married filing joint – $25,900
- Head of household – $19,400
- Single/Married filing separately – $12,950
The additional standard deduction amount for married individuals who are elderly (65 or older) and/or blind is $1,400 for each condition. For unmarried taxpayers or head of household filers, the additional standard deduction is $1,750.
Child Tax Credit
- Credit: $2,000
- Maximum refundable credit: $1,500
- Phaseout threshold amount (MAGI):
- MFJ = $400,000
- Single/HOH = $200,000
- MFS = $200,000
Mileage Rates
1/1/2022-6/30/2022
- Business: 58.5 cents per mile
- Medical: 18 cents per mile
- Charitable: 14 cents per mile
7/1/2022-12/31/2022
- Business: 62.5 cents per mile
- Medical: 22 cents per mile
- Charitable: 14 cents per mile
Gift Tax Figures
- 2022 annual gift tax exclusion: $16,000
- 2023 annual gift tax exclusion: $17,000
Healthcare
- Flexible spending arrangements (FSA)
- 2022 contribution limit: $2,850; carryover allowed: $570
- 2023 contribution limit: $3,050; carryover allowed: $610
- Health savings accounts (HSA)
- 2022 contribution limit: $3,650 (individual), $7,300 (family)
- 2023 contribution limit: $3,850 (individual), $7,750 (family)
- Catch-up contribution of $1,000 (if at least age 55 by end of tax year)
Retirement Plans
- Traditional & Roth IRA (Roth IRA contributions subject to MAGI phaseout):
- 2022 contribution limit: $6,000
- 2023 contribution limit: $6,500
- Catch-up contribution of $1,000 (age 50 or older)
- 401(k) Elective Deferrals:
- 2022 contribution limit: $20,500; $6,500 catch-up contribution (age 50 or older)
- 2023 contribution limit: $22,500; $7,500 catch-up contribution (age 50 or older)
- SIMPLE retirement plans:
- 2022 contribution limit: $14,000; $3,000 catch-up contribution (age 50 or older)
- 2023 contribution limit: $15,500; $3,500 catch-up contribution (age 50 or older)
- Simplified employee pensions (SEP):
- 2022 contribution limit: $61,000
- 2023 contribution limit: $66,000
Social Security Taxable Wage Base
- 2022: $147,000
- 2023: $160,200
Educator Deduction
- The above-the-line educator deduction for elementary and secondary school teachers has been increased to $300 for 2022.
Compiled by Michael P. Zeoli, Jr., CPA, Manager, Small Business Department. He can be reached at 716.438.2190 or mzeoli@tsacpa.com.
