2022 Filing Season Annual Information!

Standard and Itemized Deductions
The standard deduction for 2022 has been increased in consideration of inflation. In order to itemize deductions, the amount of your deductions should exceed the amount of the standard deduction. These deductions include:Medical expenses over 7.5% of your incomeState and Local TaxesHome Mortgage InterestCharitable DonationsIf your deductions do not exceed this amount, there is no need to take the time to gather this information unless you’d like us to double-check. 

The $300/600 deduction allowed for charitable contributions for those who do not itemize expired in 2021 and is no longer available.

Mileage Rates
See the postcard for mileage rates for 2022. Note that the rate changed mid year. Please submit your mileage for the first and last half of the year accordingly. It will save us time to not have to call you and ask!

1099-K and Business Income
You may have heard on the news that 1099-K forms would be issued by payment processors such as Venmo, PayPal, etc. The IRS suspended the requirement to mail these forms, but this income is and always has been taxable and should be reported. The only aspect that changed was the reporting requirement by the companies.

Child and Dependent Credits
The child tax credit and dependent care credit that was expanded in 2021 expired and has reverted back to the prior $2,000 for children and a limit of $1,200 for dependent care.

Working from Home
We are often asked about deducting expenses for those that work from home. Unfortunately, unless you are a business owner or are paid as an independent contractor, you cannot write off expenses incurred from working at home. W-2 employees do not qualify.
Our Client Portal is an Excellent Tool!
Our client portal is a great way to communicate with us and to send information that contains sensitive information. You can also upload your documents and we can complete the entire tax return process without you coming to the office! This also keeps all the information you send to us in one place!If you need to send us anything that contains sensitive information – SSNs, bank account information, etc., please use our client portal to do this. Our regular email is not encrypted or secure, and yours usually isn’t either.If you need a client portal account, email and we will set up one for you.If you need to simply send one document, you can use the guest exchange to send information without an account.
Another housekeeping note: please do not “piece meal” your tax return information to us by email. It makes it easy for something to get lost! You can, however, upload documents to your portal account as you receive them.