Preparing your own income tax return can be a task that leaves you with more questions than answers. According to a study released by the US Government's General Accounting Office, most taxpayers (77% of 71 million taxpayers) believe they benefited from using a professional tax preparer. Whether we like it or not, today's changing tax laws are so complicated that filing a relatively simple return can be confusing. It is just too easy to overlook deductions and credits to which you are entitled. Even if you use a computer software program there's no substitute for the assistance of an experienced tax professional. Here's what you get...
A knowledgeable tax professional with over 30 years of experience that will find every deduction and credit for which you qualify
Your tax return will be filed electronically so you will get a refund back quicker
An affordable fixed fee for tax preparation and filing service
We will show you potential deductions to limit your tax liability for next year
See what's changed for tax year 2022 For a more comprehensive list of changes click link below
Some tax credits return to 2019 levels This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.
The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.
Income tax brackets shifted a bit There are still seven tax rates, but the income ranges (tax brackets) for each rate have shifted slightly to account for inflation.
The standard deduction increased slightly After an inflation adjustment, the 2022 standard deduction increases to $12,950 for single filers and married couples filing separately and to $19,400 for single heads of household, who are generally unmarried with one or more dependents. For married couples filing jointly, the standard deduction rises to $25,900.
The Child Tax Credit is lowered back to pre-pandemic pricing In 2021, the American Rescue Plan Act (ARPA) temporarily increased the Child Tax Credit to $3600 for kids 5 and under and $3000 for kids 6-17. But in 2022, the credit returns to $2,000 per child age 16 or younger. The credit is also subject to phase-out starting at $400,000 for joint filers and $200,000 for single filers. For other qualified dependents, you can claim a $500 credit.
To see more of what's new this tax season, click below.