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  • What are the key changes to the Child and Dependent Care Credit for the year 2022?
    In 2022, the Child and Dependent Care Credit is non-refundable. The maximum credit percentage has decreased from 50% to 35%. Additionally, the range of care expenses eligible for the credit has been reduced. For the tax year 2022, the credit is applicable to a maximum of $3,000 in expenses for one child or dependent and $6,000 for more than one.
  • Is the unemployment exclusion income still applicable?
    The $10,200 exclusion for unemployment income was a provision applicable only to the tax year 2020, pending any additional legislative changes. Consequently, the full amount of unemployment benefits received in 2022 will be subject to federal income tax.
  • Why do FAQs matter?
    FAQs are a great way to help site visitors find quick answers to common questions about your business and create a better navigation experience.
  • What is the gift tax exclusion?
    The gift tax exclusion for 2022 maintains its limit at $15,000 per recipient. This implies that you can provide gifts of up to $15,000 to each individual, or $30,000 if your spouse concurs, which includes children, grandchildren, or anyone else, without the requirement to file a gift tax return or utilize any portion of your lifetime estate and gift tax exemption. Furthermore, the lifetime estate and gift tax exemption has risen to $11.7 million for 2022, reaching $23.4 million for couples when the portability election is promptly exercised.
  • Is there any limitation on itemized deductions for 2022 tax returns?
    There is no restriction on itemized deductions for the 2022 tax returns, much like the years 2018 through 2021. The elimination of this limitation was a direct result of the Tax Cuts and Jobs Act.
  • Will there be a recovery rebate credit available for claiming unreceived stimulus payments in 2022?
    There were no stimulus payments issued in 2022, and as a result, there won't be a Recovery Rebate Credit available to claim for stimulus payments that were not received in that year.
  • What are the HSA contribution limits for 2022 for both single and family coverage?
    The Health Savings Account (HSA) contribution limits for the year 2022 have been raised to $3,650 for individuals with single coverage and $7,300 for those with family coverage.
  • Is forgiven student loan debt for post-secondary education taxable ?
    Commencing in 2022, the majority of student loan debt obtained for higher education that is forgiven will not be treated as taxable income. Additionally, the provision that permits employees to exclude up to $5,250 of college loans paid by their employer in 2020 from their taxable wages has been extended, now covering the years through 2025. It's important to note that this $5,250 limit applies to both benefits related to student loan repayment and other educational assistance provided by an employer.
  • What are the key details of the new Clean Vehicle Credit for electric vehicles?
    Under the new legislation, individuals can still qualify for a tax credit of up to $7,500 when purchasing a new electric vehicle, now known as the Clean Vehicle Credit. Furthermore, as of January 1, 2023, individuals who purchase used electric vehicles may also be eligible for a tax credit, which is capped at the lesser of $4,000 or 30% of the vehicle's sales price, based on their income. These tax credits work as a dollar-for-dollar reduction of the taxes you owe, potentially reducing your tax liability by as much as $7,500. It's important to note that, as of August 16, 2022, the final assembly of the eligible automobile must take place in North America to qualify for these credits.
  • What is the top tax rate for tax year 2022, and how do the tax rates vary based on different taxable income levels?
    For tax year 2022, the top tax rate remains at 37%. All other rates are below based on taxable income levels.
  • What is the maximum deduction that teachers can claim for out-of-pocket expenses?
    For 2022, the deduction that teachers can claim for expenses paid out of pocket increases to $300.
  • What is an FAQ section?
    An FAQ section can be used to quickly answer common questions about your business like "Where do you ship to?", "What are your opening hours?", or "How can I book a service?".
  • What are the changes in the Child Tax Credit for the year 2022?
    The enhanced credit for qualifying children under the age of 6 and children under the age of 18 has expired. In 2022, the base Child Tax Credit (CTC) amount is $2,000 for each qualifying child. The phase-out of the credit begins when modified adjusted gross income exceeds $200,000 ($400,000 for joint filers). The refundable portion of the CTC remains limited as it was in 2020, except that the maximum Additional Child Tax Credit (ACTC) amount for each qualifying child has increased to $1,500. The extended age allowance for a qualifying child has also expired. To qualify as a child, they must be under the age of 17 at the end of 2022. For residents of Puerto Rico, there is no longer a requirement to have three or more qualifying children to be eligible for the ACTC. Bona fide residents of Puerto Rico may claim the ACTC if they have one or more qualifying children. Advance Child Tax Credit payments were not issued for the year 2022.
  • Are there any changes to the Earned Income Tax Credit (EITC) age limits?
    Age limits for the Earned Income Credit (EIC) have been reinstated to their pre-2021 tax return rules. This means that taxpayers who were 65 or older in 2021 will no longer be eligible for the EIC in 2022, pending any further legislative changes. Additionally, individuals aged 19-24 with earned income will also be excluded from claiming the EIC. The option to use 2019 earned income for calculating the EIC has been eliminated. Furthermore, the investment income limitation for the EIC has been raised from $10,000 to $10,300, with adjustments for inflation in subsequent years after 2022. For taxpayers with zero qualifying children, the EIC has been expanded in 2022, but the maximum credit amount for this group will be substantially lower, capped at $560 in 2022.
  • What is the (AMT) Alternative Minimum Tax exemption for 2022?
    The Alternative Minimum Tax (AMT) exemption for the tax year 2022 is set at $75,900. For single taxpayers, the exemption starts to phase out once their Adjusted Gross Income (AGI) exceeds $539,900. On the other hand, for Married Filing Jointly (MFJ) taxpayers, the AMT exemption is $118,100, and the phase-out begins when their AGI surpasses $1,079,800.
  • Are there changes to the Form 1099-K reporting requirements ?
    Beginning with the 2022 tax year, third-party payment settlement networks such as PayPal and Venmo will issue a Form 1099-K to individuals who receive payments totaling over $600 throughout the year for goods or services, irrespective of the number of transactions. Previously, this form was only provided if you had received more than $20,000 in gross payments and engaged in over 200 transactions. It's essential to note that the gross payment amount does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other similar adjustments.
  • Can non-itemizers claim charitable deductions?
    Unless the deduction is extended later in the year, the sole method for claiming charitable deductions will be by itemizing on Schedule A.
  • Is the Tuition & Fees Deduction eliminated ?
    Commencing in 2022, the Tuition & Fees Deduction has been discontinued. Nevertheless, to mitigate the impact of this deduction's elimination, the phase-out thresholds for the Lifetime Learning credit have been permanently raised. These phase-out thresholds now align with those of the American Opportunity credit.
  • Where can I add my FAQs?
    FAQs can be added to any page on your site or to your Wix mobile app, giving access to members on the go.
  • What does it mean for individuals who received an excess premium tax credit?
    The suspension of repaying excess premium tax credits applied only to the 2020 tax year, pending further legislative changes. As a result, for the tax year 2022, if you have received an excess of premium tax credits for your health insurance premiums, you will be required to reimburse that amount when filing your 2022 tax return.
  • Has the deduction for charitable contribution been extended ?
    The deduction of $300 for cash contributions that was initially set to expire after the 2020 tax returns has now been extended to include the 2022 tax returns. An important change to note is that previously, this deduction was limited to $300 per tax return, but for 2022, it will be limited to $300 per individual taxpayer. This adjustment allows joint tax returns (MFJ) to potentially claim a deduction of up to $600 for cash contributions. Furthermore, the 60% of Adjusted Gross Income (AGI) limitation for charitable contributions has been temporarily suspended for the year 2022.
  • How do I add a new question & answer?
    To add a new FAQ follow these steps: 1. Manage FAQs from your site dashboard or in the Editor 2. Add a new question & answer 3. Assign your FAQ to a category 4. Save and publish. You can always come back and edit your FAQs.
  • How do I edit or remove the 'Frequently Asked Questions' title?
    You can edit the title from the FAQ 'Settings' tab in the Editor. To remove the title from your mobile app go to the 'Site & App' tab in your Owner's app and customize.
  • Can I insert an image, video, or GIF in my FAQ?
    Yes. To add media follow these steps: 1. Manage FAQs from your site dashboard or in the Editor 2. Create a new FAQ or edit an existing one 3. From the answer text box click on the video, image or GIF icon 4. Add media from your library and save.

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