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2022 Tax Code Changes

September 04, 20232 min read

“It's time to get a jump start on compliance. We will see record numbers for resolution in 2023 .” - TamikaMarie Smith

The new tax code has been a hot topic in the news and in the world of finance. This new code has the potential to affect millions of Americans, and it is important to understand the changes that have been made.

One of the most significant changes to the tax code is the increase in the standard deduction. This means that taxpayers will be able to deduct more from their income before taxes are calculated. The new standard deduction for single filers is $12,550 and $25,100 for married couples filing jointly.

Another important change is the decrease in the tax rates for some taxpayers. The tax rates for individuals have been reduced, with the highest rate dropping from 39.6% to 37%. The corporate tax rate has also been reduced from 35% to 21%.

In addition, the new tax code includes changes to several deductions and exemptions. For example, the deduction for state and local taxes (SALT) has been capped at $10,000. This means that taxpayers who previously deducted more than $10,000 for SALT will no longer be able to do so.

The new tax code also includes changes to the child tax credit. The credit has been increased to $2,000 per child, and there is now a $500 credit for non-child dependents. However, the income limits for the credit have been reduced, which means that some families who previously qualified for the credit may no longer be eligible.

One of the most controversial changes in the new tax code is the elimination of the individual mandate of the Affordable Care Act. This means that individuals who do not have health insurance will no longer face a penalty.

Overall, the new tax code represents a significant overhaul of the previous system. While some taxpayers may benefit from the changes, others may see an increase in their tax liability. It is important to consult with a tax professional to understand how the new tax code will affect your individual situation.

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TamikaMarie

TamikaMarie is an Accountant, Tax Mentor and mother with 26 years of financial literacy education knowledge to share!

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