Top 7 Individual Tax Changes for 2022

02-08-2023Tax Information

Changes to several tax credits and contributions.

Change 2021 2022
Economic Impact Payments None – No economic impact payments to individuals 3 Rounds of Economic Impact Payments to Individuals in 2020 - 2021
Child Tax Credit $2,000 per qualifying child under up to age 16 $3,000 per child, $3,600 for under age 6, include age 17, plus advance payment of half the amount Jul – Dec 2021
Child and Dependent Care Assistance Credit Nonrefundable (i.e., limited to tax liability). Max credit percentage dropped to 35%. Full credit available to taxpayers with AGI of $15,000 or less Refundable tax credit. For 2021, max credit percentage was 50%; full credit available to taxpayers with AGI of $125,000 or less
Earned Income Tax Credit Credit percentage for childless earners reverts back down to pre-pandemic rates (7.65%), and ceiling of earned income is lower ($7,320) The credit percentage was increased for Childless income earners (15.3%) – maximum credit was larger and ceiling for eligible earned income was higher($9,820)
Charitable contributions for non- itemizers No above the line deduction- only itemized deduction $300 above the line deduction (2020) increased to per person in 2021 ($600 MFJ)
Employer Provided Child Care $5,000 in employer provided childcare is excluded from income (Cafeteria Plan) $10,500 employer provided childcare is excluded from income (Cafeteria Plan)
Healthcare Premium Tax Credit Reverts to pre- pandemic rules. Eligibility is based on household income relative to the federal poverty limit Health Insurance premium credit expanded to include individuals receiving unemployment compensation
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