To load the page where you may download and print the Journal of Accountancy Filing Season Quick Guide--tax year 2022 click here. NET INVESTMENT INCOME TAX 3.8% of the lesser of (1) net investment income or (2) the amount of modified adjusted gross income (MAGI) over these thresholds: n Single: $200,000. Married filing jointly and surviving spouses: $250,000. Married filing separately: $125,000. Heads of household: $200,000. Estates and trusts: $13,450. SELF-EMPLOYMENT TAX Tax rate: 15.3% (12.4% OASDI tax plus 2.9% Medicare tax). Surtax: 0.9% Medicare surtax is applied to self-employment income in excess of $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately). Wage base: $147,000 of self-employment income for OASDI (maximum OASDI tax of $18,228; no ceiling on Medicare tax). KIDDIE TAX For a child subject to the kiddie tax, the net unearned income of the child (limited to the individual’s taxable income) taxed at the parents’ marginal tax rate. Net unearned income for 2022 is the portion of the child’s adjusted gross income (AGI) over the sum of: (1) $1,150 plus (2) the greater of $1,150 or, if the child itemizes deductions, those itemized deductions directly connected to the production of the unearned income. PERSONAL EXEMPTION Personal exemptions are suspended from 2018 through 2025. A deemed personal exemption amount of $4,400 is used for purposes of determining who is a “qualifying relative” under Sec. 152(d)(1)(B).
n Single: $12,950.
n Married filing jointly and surviving spouses: $25,900.
n Married filing separately: $12,950 ($0 if spouse itemizes deductions).
n Heads of household: $19,400.
Additional standard deduction for age 65+ and blind taxpayers:
n Single: $1,750.
n Married filing jointly and surviving spouses: $1,400.
n Heads of household: $1,750.
Standard deduction for individuals who can be claimed as dependents
is the lesser of (1) $12,950 or (2) the greater of $1,150 or $400
plus the individual’s earned income.
The overall limitation on itemized deductions is suspended from
2018 through 2025. Miscellaneous itemized deductions subject to
the 2%-of-AGI floor are also suspended from 2018 through 2025.
STANDARD MILEAGE RATE
n Business: For miles traveled between Jan. 1, 2022, and June 30,
2022, 58.5 cents per mile; for miles traveled between July 1, 2022,
and Dec. 31, 2022, 62.5 cents per mile. Business mileage is no longer
deductible as an unreimbursed employee business expense,
except for members of a reserve component of the U.S. armed
forces, state or local government officials paid on a fee basis, and
certain performing artists.
n Medical and moving: 18 cents per mile for miles traveled between
Jan. 1, 2022, and June 30, 2022; 22 cents for miles traveled between
July 1, 2022, and Dec. 31, 2022. Moving mileage is deductible
only by U.S. armed forces members on active duty who move
pursuant to a military order and incident to a permanent change
of station to whom Sec. 217(g) applies.
n Charitable services: 14 cents per mile.
For business autos for which the optional business standard mileage
rate is used, the portion treated as depreciation is 26 cents per mile.
n Earned income: Maximum credit depends on number of qualifying
children: $560 (none); $3,733 (one); $6,164 (two); $6,935
(three or more), subject to phaseouts. The threshold for disqualifying
investment income is $10,300.
n Child: The amount used to determine the amount of credit under
Sec. 24 that may be refundable is $1,500.
n Adoption expense: $14,890 maximum. Phases out with MAGI
between $223,410 and $263,410.
n American opportunity: $2,500 per year maximum (100% of the
first $2,000 of qualifying expenses and 25% of the next $2,000),
with 40% of the credit refundable unless the taxpayer is a child
subject to the kiddie tax. Phases out for single taxpayers with
MAGIs between $80,000 and $90,000 ($160,000 and $180,000 for
married filing jointly).
n Lifetime learning: 20% of up to $10,000 of qualified tuition and
related expenses. Phases out between $80,000 and $90,000 of
MAGI for single filers and from $160,000 to $180,000 for married
n Sec. 25D residential clean energy: 30% of amount paid for
qualifying property (for qualified fuel cell property, maximum
credit of $500 for each 0.5 kilowatt of capacity).
n Small business health insurance: 50% of amount of nonelective
contributions an eligible small business makes on behalf of its
employees for premiums for certain health insurance coverage
(35% credit against payroll tax for tax-exempt entities). Available
for two consecutive tax years. Phases out for employers with
between 10 and 25 full-time-equivalent employees and average
annual wages of between $28,700 and $57,400.
SEC. 179 AND BONUS DEPRECIATION
n Sec. 179 expense deduction: $1,080,000 with a phaseout threshold
n Sec. 168(k) bonus depreciation: 100% of adjusted basis of qualifying
property in the first year it is placed in service (for property
placed in service after Sept. 27, 2017).
RETIREMENT PLAN LIMITS
n Maximum 401(k) plan elective deferral: $20,500 (plus $6,500
catch-up for age 50+).
n Defined benefit plan maximum benefit: $245,000.
n Defined contribution plan contribution limit: $61,000 or 100% of
compensation, whichever is less.
n IRA contribution limit: $6,000 (plus $1,000 catch-up for age 50+).
n IRA deduction phaseout for active participant in a workplace
retirement plan: MAGI from $109,000 to $129,000 (married
filing jointly); $68,000 to $78,000 (single taxpayers and heads of
household); $0 to $10,000 (married filing separately); $204,000
to $214,000 (individual who is not an active participant in a
workplace retirement plan whose spouse is an active participant
in a workplace retirement plan).
n Roth IRA contribution limit: $6,000 (plus $1,000 catch-up for age
n Roth IRA contribution limit phaseout: MAGI from $204,000 to
$214,000 (married filing jointly); $129,000 to $144,000 (single
and heads of household); $0 to $10,000 (married filing separately).
n SEP minimum required compensation: $650; compensation limit
for determining maximum allowable contributions by employer:
ESTATES AND GIFTS
n Per donee annual gift tax exclusion: $16,000.
n Annual exclusion for transfers to noncitizen spouse: $164,000.
n Gift/estate tax exclusion: $12,060,000; estate of first spouse to
die may pass unused portion of exclusion to surviving spouse.