Changes For 2022 Taxes, Business & Personal

Changes For 2022 Taxes, Business & Personal
Categorized as Accounting, ASCEND Business Advisory, Sterling Tax Advisors, Taxes Tagged , ,

Happy Tax Season! If you’re preparing to file your taxes for 2022, you’ve come to the right place. Tax Season is in full swing here at the William Rogers Company. We love helping businesses and individuals understand exactly how they can minimize their taxes and maximize their returns. In 2022, several significant changes to tax law and filing requirements have occurred. Knowing these changes for 2022 taxes is crucial to getting the most out of your return. 

Tax Changes For Businesses In 2022

Filing your taxes as a business can be complex. Make sure you understand how taxes changed for your business in 2022. 

Tax Cuts and Jobs Act (TCJA) 

The TCJA is a huge tax act that affects both businesses and individuals. It took effect in 2022, with several schedule changes related to business deductions, depreciation, and expensing that will continue through 2026. One focus of the TCJA is phasing out COVID-related relief policies.

In 2022, the most significant change enacted by the TCJA that affected businesses was the removal of 100% bonus depreciation after 2022. In 2023, any qualifying property will only receive an 80% bonus deduction, with this number continuing to decrease by 20 percentage points every year until being totally phased out in 2027. 

What Are The 2022 Corporate Tax Changes?

There are several changes for corporate tax filers for 2022: 

  • Small Business Deduction: Business owners of S corporations, LLCs, partnerships, or sole proprietorships can claim up to a 20% tax reduction on their share of the company’s income. Though this deduction has existed since 2018, the income thresholds have changed. In 2022, individuals can claim a deduction on income up to $170,050 in tax and $340,100 for those filing jointly
  • Inflation Reduction Act (IRA): Becoming law in August 2022, the IRA requires corporations with financial accounting profits of over $1 billion to pay a 15% book minimum tax and a 1% tax on some stock buybacks. Additional deductions are also available to businesses that take advantage of clean energy. 

Personal Tax Changes In 2022

The United States Internal Revenue Service (IRS) requires every permanent resident working in the U.S. to file a tax return, depending on how much they earn annually. Filing taxes is also beneficial for many people who receive refunds from the government. 

What Are The New Taxes For 2022?

Tax brackets have shifted for the tax year 2022. However, the amount you pay has not changed. This means that more of your money will be taxed at a lower rate. However, if your income shifted with the tax brackets, this change may not make a difference for you.

Inflation Reduction Act (August 2022)

The IRA is another sweeping tax bill that has implications for both individuals and businesses. For individuals, the following are some notable changes:

  • Eligibility Rules for Clean Vehicle Tax Credit
  • Energy Efficient Home Improvement Credit
  • Residential Clean Energy Credit

SECURE 2.0 Act (December 2022)

The SECURE 2.0 Act was signed into law with the purpose of reimagining the U.S. retirement system to make it easier for Americans to access their retirement savings. Notable changes include raising the required minimum distribution age, permitting emergency withdrawals, and increasing automatic rollover limits. 

Schedule A Review Of Your 2022 Taxes

Staying on top of tax changes every year can be burdensome. If you’d like assistance preparing your taxes for 2022, the Williams Roger Company is here to help. We have in-depth expertise in helping individuals and businesses get the most out of their tax returns. Schedule a call to discuss your 2022 taxes with a member of our team today, 888-297-3321.