Alliance Tax Recommends all Clients Create an Individual IRS Online Account
Setting up an IRS online account has many benefits. You can securely access and view your IRS tax information anytime through the individual online account. You have the option to: |
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Review Federal estimated payments made during the year or refunds applied as a credit.. |
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Review Federal amounts owed for past tax years. Payment history. Payment plan details. |
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Print digital copies of IRS notices. |
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Request Federal tax records/tax transcripts.
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Schedule Federal payments.
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To create an IRS online account, each individual taxpayer needs to visit:
https://www.irs.gov/payments/view-your-tax-account
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2022 IRS Standard Deduction Amounts
Setting up an IRS online account has many benefits. You can securely access and view your IRS tax information anytime through the individual online account. You have the option to:
For 2022, the standard deduction amount has increased for all filers, and the amounts are as follows. |
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$12,950 Single, or Married Filing Separately |
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$25,900 Married Filing Jointly |
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$19,400 Head of Household |
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| Taxpayers who are at least 65 years old or blind can claim an additional 2022 standard deduction of
$1,400 ($1,750 if using the single or head of household filing status). For anyone who is both 65 and
blind, the additional deduction amount is doubled.
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Child Tax Credit (CTC)
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As you may recall, there were big changes to the Child Tax Credit in 2021. The credit amount was
increased, the credit was made fully refundable, children up to 17 years of age qualified, and half the
credit amount was paid in advance through monthly payments from July 2021 to December 2021.
Lawmakers are trying to extend these changes for one more year, so far, they haven’t been successful.
As of 2022, the CTC has reverted back to $2000 per child 16 and under, with no advanced monthly
checks. Other dependent credit remains at $500 for those 17 or older on December 31, 2022.
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Child and Dependent Care Credit
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Like the 2021 CTC, the child and dependent care credit has also been reduced from the temporary boost
provided by the American Rescue Plan of 2021.
For tax year 2022, the maximum amount of care expenses you're allowed to claim is $3,000 for one
person, or $6,000 for two or more people. The percentage of your qualified expenses that you can claim
ranges from 20% to 35%.
Please provide your childcare expense statement for your 2022 tax return preparation.
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Charitable Donations
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| The 2021 above the line Deduction of $300 (individual filer) or ($600 Joint filer) has not been extended
for 2022 tax return. You will only benefit from charitable donations if your total itemize deductions are
higher than your standard deduction. Or by using a Qualified Charitable Donation via your Required
Minimum Distribution (RMD). |
| 2022 Standard Mileage Rate |
With the soaring gas prices during the first part of 2022, the IRS increased the standard mileage rate set
for 2022 for mileage driving after July 1, 2022. For those that qualify for a mileage adjustment to there
income, please provide your mileage total separated for January 1 through June 20 and for July 1
through December 31st.
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| | Rates January 1 through June 30
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58.5 cents per mile driven for business use, up 2.5 cents from 2021 |
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18 cents per mile driven for medical, up 2 cents from 2021 |
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14 cents per mile driven in service of charitable organizations, remains unchanged from 2021. |
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| | Rates July 1 through December 31
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62.5 cents per mile for business use |
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22 cents per mile driven for medical |
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14 cents per mile driven in service of charitable organizations |
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| Digital Assets/Virtual Currency/Cryptocurrency |
| The IRS treats virtual currencies as property, meaning it is taxed in a manner similar to stocks or real
property. The IRS is focusing on cryptocurrency/digital asset tax evasion with virtual currencies,
employing data analytics to uncover transactions that crypto users assumed were hidden. Form 1040
asks whether at any time during 2022, did you: a) receive (as a reward, award, or payment for property
or services); or b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a
digital asset)? If the answer is yes, you must provide a record of all transactions. This includes, how
much you paid for the digital asset, how long you held it for and how much you sold it for, as well as
receipts for each transaction. More information may be required to complete your 2022 tax return. |
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| Form 1099-K |
If you received payments through apps like Venmo, Paypal, or CashApp in 2022, you may receive Form
1099-K in early 2023. Before 2022, Form 1099-K was issued to service providers for sales exceeding
$20,000. Now, the threshold is just $600, and even a single transaction can trigger a form. There is no
change to the taxability of income, only changes to the reporting rules. The IRS says that money received
from friends and relatives as personal gifts or reimbursements for personal expenses are not taxable. If
a 1099-K is issued in error, the taxpayer may need to contact the issuer or make adjustments on their
tax return.
Taxpayers must report all income on their tax return unless it is excluded by law.
If you received Form 1099-K, you must provide a copy of the 1099-K to your preparer for 2022 tax
preparation. |
| Retirement Savings |
The IRS updated the table used to calculate required minimum distributions (RMDs) to account for
longer life expectancies. That means RMDs should be a bit smaller in 2022 than they were before.
In 2023, the limit on annual contributions to an IRA will increase to $6500. The IRA catch-up contribution
limit for individuals age 50 and over remains $1000. |
| 2022 MO Income Tax |
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5.3% - Top Tax Rate decreased from 5.4% |
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Taxable Income Brackets increased based on Inflation |
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| 2022 MO Standard Deduction Amounts |
| | For 2022, the standard deduction amount has increased for all filers, and the amounts are as follows.
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$12,950 Single, or Married Filing Separately |
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$25,900 Married Filing Jointly |
| - | $19,400 Head of Household |
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| | Additional Standard Deduction
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$1,750 Single, Head of Household |
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$1,400 Married Filing Jointly, Separately, or Qualified Widow |
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| 2022 MO Inactive Duty Military Income Tax Deduction |
| | For National Guard Inactive Training, National Guard Annual Training, Reserve Components Armed
Forces)
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60% of Military Income for 2022 |
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80% of Military Income for 2023 |
| - | 100% of Military Income for 2024 |
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| 2022 MO Other Subtractions and/or Deductions |
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15% - Business Income Subtraction Increase from 10% |
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$41,373 - Maximum Social Security benefits for Limiting Public Pension |
| - | Railroad Retirement/Social Security Deduction on MO A |
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15% - Business Income Subtraction Increase from 10% |
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$5,351 - Max Tier II Railroad Benefit |
| - | $14,465 - Max Social Security Deductions |
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| 2022 MO Other Items Needed |
| | The Missouri Department of Revenue is allowing a $1,400 deduction for taxpayers with the filing status
of Head of Household or Qualifying Window for prior years back to 2018. The Department to issue
letters in November/December explaining the credit and how to claim the credit on your 2022 return.
We must have a copy of this letter to complete your Missouri return correctly. |
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