What to Know When Filing Your 2022 Tax Return 

Tax season is once again on the horizon, and staying on top of your taxes is essential. You don’t want to encounter any issues come the United States tax filing due date – April 18, 2023.

Overview

As in previous years, this tax season will have its share of changes.

While these changes may significantly impact some taxpayers, they may have little effect on others. The best way to know how the changes will affect you is to stay informed and plan ahead.

Our Cg Tax, Audit & Advisory team is here to help! We’re keeping up with all the latest changes so that you don’t have to. This article will cover some of the most significant updates affecting taxpayers in the 2023 tax season.

Contact us today to get a personalized overview of how these changes may impact your unique tax situation.

What’s New for the 2022 Tax Year?

We’ve highlighted a few of this year’s most notable tax updates below.

  • The Inflation Reduction Act
  • The standard deduction increase
  • New tax credits for electric vehicles

Inflation Reduction Act of 2022

In a bid to reduce the cost of living for Americans, the Inflation Reduction Act was passed in 2022. This law makes a number of changes to the tax code.

There will be no taxes for small businesses and no new taxes on families earning $400,000.

While this may not seem like a lot, it can add up over time. And it’s important to remember that the Inflation Reduction Act is just one of many changes for the 2023 tax season.

Increased Standard Deduction

The standard deduction is increasing for the 2022 tax year. The new standard deduction amounts are:

  • $12,950 for single taxpayers
  • $25,900 for married taxpayers filing jointly
  • $19,400 for head-of-household taxpayers

These amounts are up from $12,550, $25,100, and $18,800, respectively in the 2021 tax year.

The increased standard deduction is just one of many changes that may affect taxpayers this tax season, and you can take advantage of it if you’re not itemizing your deductions. Itemized deductions are typically only used if they exceed the standard deduction amount.

Tax Credits for Electric Vehicles

There’s good news for taxpayers who own or are looking to purchase an electric vehicle – there is a new tax credit for these types of vehicles.

The credit is worth up to $7,500 and is available for both new and used electric vehicles. The credit is also available for leaseholders and businesses that purchase electric vehicles.

To claim this credit, you will need to complete Form 8936 and submit it with your tax return. Be sure to keep all documentation related to your purchase or lease, as you will need to provide this to the IRS when claiming the credit.

Start preparing your tax return as early as possible to make the most of the upcoming tax season. The Cg Team is prepared to help you or your business get the most out of your state and federal tax filing during the upcoming tax season – contact us today to learn more about how we can assist you. We’ll help you stay on top of all the latest changes to ensure you’re getting the most out of your return.