It can be challenging to remain current on the ever-evolving tax code. The American public was able to take advantage of various stimulus-related credit expansions thanks to last year’s raft of tax law changes. No longer valid this year*: these increases.
You want to maximize your tax refund but don’t know where to start. What credits and deductions should you be aware of?
Utilizing a 2022 tax calculator, we may examine the effects of the new legislation.
And if you’ve heard rumblings about how the money you get through services like Venmo, Facebook Marketplace, and others might influence your taxes in 2022, you’ll want to find out exactly what that means. Find out how to navigate the 2022 tax law changes with the help of a certified Pembroke Pines, FL tax services specialist.
Below are the key alterations to tax legislation that will occur in 2022.
Modifications to Tax Laws in 2022
You won’t need a master’s in tax law to keep up with how the law may change and how it may affect you. By reading through the contexts, see whether any of the following apply to you.
How about the year 2022?
- Get paid through applications like Venmo or PayPal, or sell your wares on Facebook Marketplace, Etsy, or Poshmark? In compliance with the new tax law, each platform that paid you more than $600 had to send you a 1099-K form in January. However, the IRS has announced that the 1099-K rule change would be postponed until the 2022 tax year, meaning that the 2021 levels will still apply in most cases. Check out our 1099-K page for more information.
- Buy health insurance through the ACA’s marketplace (healthcare.gov)? This temporary rule change will allow more people to claim the Premium Tax Credit (PTC) and increase their maximum refund.
- Improve your home’s energy efficiency. The Residential Clean Energy Credit has been boosted from 26% to 30%, which could be beneficial if you’re looking to make an investment in renewable energy sources like solar panels or solar water heaters (for items bought between Jan. 1, 2022-Dec. 31, 2032).
- Use virtual currencies? Although this change won’t take effect until 2023, we’re bringing it up now so you can get into the habit of maintaining detailed records as soon as the new year begins. If you make a sale on a cryptocurrency exchange in 2023, you will receive a Form 1099-B. Read more on the tax implications of cryptocurrency.
