Top 10 Tax Facts You Should Know for 2022

Welcome back to Powering Your Retirement Radio. This week I am taking off my Investment Advisor, Certified Financial Planner™ hat, and putting on my Enrolled Agent, Marathon Tax Planning hat. I am going to share 10 Tax Facts for 2022.

I recently attended a two-day, 16 hours of continuing education tax update session for my tax practice. To say it was fun would be a lie; informative and had lots of good information, without a doubt.

Western CPE was the firm offering the classes. The instructors Sharon Kreider, CPA, Karen Brosi, CFP®, EA, and Mark Seid, EA, CP, USTCP, are some of the smart people I know in the tax world. They all also are practicing preparers in addition to instructors.

It is impossible to recap the 16 hours in one podcast so I thought I would pull out a Top Ten List of things many people would or should want to know about.

Top 10 Tax Facts

1) IRS overwhelmed by calls – 90,000 calls a minute

2) IRS Enforcement is back – Letter usually asks for a reply in 30 days. It takes them 60 days to sort their mail.

3) 3rd Round of Stimulus in March of 2022 – Reporting this correctly, IRS not making adjusts for taxpayers this year

4) Child Tax Credit was increased in 2022, but there is a Double Phase Out to help confuse matters. The advances will be reported on IRS Letter 6149. The CTC Advance will cause problems for divorced parents who swap child deductions yearly.

5) Child and Depend Care Credit was increased. The new total does not have to be spent evenly if you have more than one child.

6) Medical Expense Deductions on Schedule A were permanently lowered to 7.5% of AGI. PPE qualifies for Medical Expenses, and yes, hand sanitizer counts.

7) Student Loan Tax-Free Forgiveness extended through 2025

8) Virtual Currency is receiving increased scrutiny. If you exchanged currency from one coin to another, that is reportable. That is a taxable event if you receive currency without paying for it.

9) Have you moved? Update your address with the IRA on Form 8822 or Form 8822-B for a business

10) Set up an account on IRS.gov. It will establish an ID.me

*Bonus*

FBAR and FATCA, don’t forget to file if you have accounts outside the US.

Please listen to the episode to hear more about each topic, or click on the links in this post to read more about the different topics.

Thank you for listening. I will talk with you again soon. Until next time stay safe.