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Individual Tax Services

IndividualTaxes

What Do the 2022 Cost-of-Living Adjustment Numbers Mean For You?

The IRS has released the 2022 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, mainly due to the COVID-19 pandemic, many increased considerably over 2021. As you implement 2021 year-end tax planning strategies, be sure to take these 2022 adjustments into account. 

Changes include:

  • Tax brackets increased
  • Alternative Minimum Tax (AMT) was indexed for inflation
  • Retirement-plan-related limits increased

More Details on the 2022 Cost-Of-Living Adjustments

Congress Passes $1.2 Trillion Infrastructure Bill with Minor Changes to Code

Like any infrastructure bill, the legislation provides spending, more than $500 million of it "new", on roads, highways, bridges, public transit, and utilities. The bill is significantly smaller than what was originally proposed by President Biden in April.

Download the PDF Overview

What are the Latest Tax Updates?

What are the 2022 Tax Rates and Deductions?

  • Individual Tax Rates: 2022 tax bracket thresholds were increased by approximately 1% over 2020 levels. Download the SVA tax guide: 2022 Tax Rate Card
  • Standard Deduction:
    • Single: $12,950
    • Head of Household: $19,400
    • Married Filing Jointly: $25,900
    • Married Filing Separately: $12,950
  • Child Tax Credit: $2,000 per qualifying child/year. The eligibility is extended to age 17.
  • Alternative Minimum Tax (AMT):
    • Single or Head of Household: $75,900
    • Married Filing Jointly: $118,100
    • Married Filing Separately: $59,050
    • Single or Head of Household: $539,900 - $843,500
    • Married Filing Jointly: $1,079,800 - $1,552,200
    • Married Filing Separately: $539,900 - $776,100
    • Exemptions:
    • Exemption Phaseouts Based on AMT Income:
  • Estate and Gift Tax Exemption: The lifetime exemption is $12,060,000 with a top tax rate of 40%. A surviving spouse may be able to use the deceased spouse’s unused estate tax exemption. The annual gift tax exclusion is $16,600 per recipient ($32,300 if spouses elect “split-gift” treatment.
  • Section 199A Deduction for Owners of Pass-Through Entities: Up to 20% of qualified business income is subject to various limitations. When an owner’s taxable income exceeds $170,050 ($340,100 for joint filers), the following limits are phased in over a $50,000 range ($100,000 range for joint filers):
    • 50% of the amount of W-2 wages paid to employees by the qualified business during the tax year, or
    • The sum of 25% of W-2 wages plus 2.5% of the cost of qualified property.
    • Deduction isn’t available for income from specified service businesses.
    • Deduction can’t exceed the greater of the owner’s share of:
  • Section 179 Expensing and Bonus Depreciation:
    • Section 179 expensing limit: $1,080,000
    • Section 179 phaseout threshold: $2,700,000
    • Bonus depreciation limit: 100%

 

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Services Offered: How SVA Can Help

Business professionals need easy access to information to make timely decisions. SVA has what you need, when you need it. Choose a topic below or just contact us directly. Our expertise is ready anytime you need it.

Planning for current and future education expenses is especially important. Several tax incentives can help reduce the cost of paying for higher education. These incentives include the American Opportunity Tax Credit, Lifetime Learning Credit, Qualified Tuition Programs, Student Loan Interest Deduction, 529 Plans, and the Coverdell Education Savings Account. The incentives can be a credit deduction or exclusion and may be limited by income.

The more you pay in taxes, the less money you have to invest in your personal financial goals. The key to reducing your tax liability rests in proactive planning. We can identify and implement key planning opportunities to minimize your current tax liability. Reach out to our experienced tax professionals who can look at your overall tax situation and help you understand and reduce your tax impact.

We can help you with:

  • At Risk Rules and Passive Activity
  • Individual Audit Assistance
  • Divorce Tax Planning
  • Health Savings Accounts (HSAs) Planning
  • Payment Planning
  • Stock-Based Compensation Planning
  • Tax Planning for Retirement
  • Estate and Trust Tax Planning
  • Charitable Giving Strategies

Being delinquent in your tax payments can result in a vast array of problems and cause substantial amounts of undue stress. Our qualified professionals can work with you in dealing with the IRS and other taxing authorities on delinquent tax liability, tax penalty, and interest issues, as well as challenges in your ability to pay the amount due. Offer in Compromise (OIC), bankruptcy, and negotiated payment schedules are a few of the strategies we can utilize in helping you deal with delinquent and disputed tax issues.

Resources

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SVA® Web Tax Guide

Visit SVA’s Web Tax Guide to access a wide array of resources that can help prepare you and your business for the upcoming tax season.

2022 Federal Tax Rates

2022 Federal Tax Rates

This easy-to-use resource has all the tax rates, deductions, credits and limits in a quick view format.

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Forbes Names SVA as 2021 America's Best Accounting Firms
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