Tax Year 2022 Updates

  • The enhanced Child Tax Credit enacted as part of the American Rescue Plan Act has so far been allowed to expire at the end of 2021.

  • The charitable deduction for non-itemizers was effective for two years, in 2020 and 2021, and is unavailable for 2022.

  • The Inflation Reduction Act extended several Tax Code provisions related to green energy:

    • The Plug-in Electric Vehicle Credit, renamed the Clean Vehicle Credit, contains several new requirements effective starting in 2023 or later.

    • The newly renamed Energy Efficient Home Improvement Credit has been extended through 2022.

    • The newly renamed Residential Clean Energy Credit, the one for solar and wind installations, has now been restored to 30 percent for 2022, with the 30 percent credit extending through 2032, after which a phase-down starts again.

    • The Alternative Fuel Refueling Property Credit has been extended retroactively for 2022 and through 2032.

    • For businesses, the Energy Efficient Commercial Building Tax Deduction remains in effect for 2022.

    • For home builders, the Credit for Energy Efficient Homes was also extended for 2022

  • The ability for businesses to currently write off research and development costs from the Tax Cuts and Jobs Act also expired at the end of 2021.

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For individual taxes, complete the organizer linked below. Both an English and a Spanish version are available.

  • The law requires that adequate records be maintained for travel, meals and gift expenses. The documentation should include the amount, time and place, date, business purpose, description of expense and business relationship of recipient(s). Note that entertainment expenses are not deductible, and meals provided by a restaurant may be 100% deductible.

  • Note: Current tax law requires taxpayers to have the following for all deductible charitable contributions of cash, check or any other monetary gift: (1) a bank record (such as a canceled check) or (2) a written communication from the charity that adequately documents the donation.

  • Please note that medical expenses must exceed 7.5% of adjusted gross income to be deductible as an itemized deduction. Itemized deductions are generally only beneficial if they exceed your standard deduction. Health insurance premiums and medical expenses paid with pre-tax dollars (cafeteria plans, HSAs, etc.) are not deductible.