As we enter the last half of 2022, we thought we would update you on selected tax laws that expired at the end of 2021 and would need a retroactive extender bill to be reinstated for this year.
- The increase in the child credit expired at the end of 2021. This credit reverted back to $2,000 (from $3,000/$3,600); reduced the age back to under 17; is no longer fully refundable; and reverts back to lower income phaseouts.
- The increase in the daycare credit also expired at the end of 2021. It reverts back to 20% (from 50%); reverts back to a very low AGI phaseout; and lowers qualified expenses back to $3,000 for 1 child ($6,000 for >1) from the amounts of $8,000 ($16,000 for >1).
- The $600 non-itemizer charitable deduction amount expired at the end of 2021.
- The 2021 increases to the earned income credit for taxpayers without children and for older and younger Americans reverts back to 2020 rules.
- The 100% of AGI charity deduction for cash contributions reverted back to a 60% limit.
The deduction for mortgage insurance premiums as mortgage interest expired at the end of 2021.
- Required minimum distributions returned for taxpayers 72 and over.
- The Employee Retention Credit for all businesses, including startups, expired at the end of 2021, although it may still be claimed on amended 941’s for 2021 and 2020.
Please contact us if you have any questions about these changes or any other items that may affect you tax situation.
Brian Chandler, CPA