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2022 Tax Updates

 

As the 2022 tax season approaches, there are several important updates of which service providers should be aware. A few important changes are outlined here.

  • Advance Child Tax Credit Payments. Families who received advance child tax credit payments will need to compare the monthly payments they received with the amount they are eligible to claim on their 2021 tax return to determine if they may be able to claim additional credit or if they will need to repay some credit. Eligible families who did not receive monthly advance payments in 2021 can get a lump-sum payment by claiming the child tax credit when they file their 2021 federal income tax return this year.
  • Changes to the Charitable Contribution Deduction. Taxpayers who do not itemize deductions can qualify for a deduction of up to $600 for those who are married filing joint returns and $300 for all other filers who made cash contributions to qualifying organizations in 2021.
  • Retirement Plan Contribution Limits. The annual contribution limit for TSP, 401 (k), 403 (b) and most 457 plans for 2021 was $19,500, with a maximum catch-up contribution limit of $6,500. For 2022, the contribution limit increased to $20,500 with no change to the catch up contribution. For both Roth and Traditional IRAs, the contribution limit remains unchanged at $6,000, or $7,000 for those ages 50 or older.

Join us for the upcoming February 15th webinar, “2022 Tax Updates: What Service Providers Need to Know,” to cover these and additional updates in depth.  Free CEU credits are available for AFCs and CPFCs.

The IRS's Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals, including those who generally make $58,000 or less, those with disabilities, and limited English-speaking tax payers. Providers can be found via the IRS website.

For those working with service members who are unsure about how these and other updates may affect their tax situation, tax professionals are available to help through Military OneSource. MilTax consultants are specially trained to help with unique tax situations specific to Service members and their families. Additionally, free MilTax preparation and e-filing software is available through mid-October.

For additional content related to working with clients on personal financial issues, visit the MFLN Personal Finance Team. Free CEUs are available for AFCs and CPFCs through our webinars.

Written By:
Selena Garrison
Program Coordinator
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The Extension Foundation was formed in 2006 by Extension Directors and Administrators. Today, the Foundation partners with Cooperative Extension through liaison roles and a formal plan of work with the Extension Committee on Organization and Policy (ECOP) to increase system capacity while providing programmatic services, and helping Extension programs scale and investigate new methods and models for implementing programs. The Foundation provides professional development to Cooperative Extension professionals and offers exclusive services to its members. In 2020 and 2021, the Extension Foundation has awarded 85% of its direct funding back to the Cooperative Extension System, 100% of funds are used to support Cooperative Extension initiatives. 

This technology is supported in part by New Technologies for Ag Extension (funding opportunity no. USDA-NIFA-OP-010186), grant no. 2023-41595-41325 from the USDA National Institute of Food and Agriculture. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture or the Extension Foundation. For more information, please visit extension.org. You can view the terms of useat extension.org/terms.

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