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2022 Tax Changes, 2022 Tax Guide

Tax Changes and Tips for 2022

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2022 has some important tax changes. Below are the main changes for individuals along with some tax tips.

Charitable Contributions:

The Cares Act provided a deduction for charitable contributions even if you do not itemize your deductions. This means you can deduct $300 as a single filer or $600 for married filers.
The deduction is allowed for cash donations to qualified charities. You are required to have evidence of your contribution which can be a receipt or even a text message. Noncash donations, such as items donated to the Good Will, do not qualify unless you take itemized deductions in place of the standard deduction.

Capital Gains:

If you earn less than $54,625 (single) or $109,250 (married joint) your capital gains rate is 0%. This means you can realize capital gains on your investments, up to the above limits and pay no tax. Talk to your tax advisor about strategies you can use to minimize your taxes if this applies to you.
Note: The income threshold may be higher if you itemize your deductions.

Double up on Itemizing:

Previous tax changes that went into effect in 2017 resulted in fewer people itemizing. This year the standard deduction is $12,950 (single) or $25,900 (married). In order to itemize, your itemized deductions need to exceed the standard deduction amount. Typically itemized deductions are charitable contributions, real estate taxes, and home mortgage interest.
If you have a lot of itemized deductions you can maximize their impact by doubling up in a single tax year. You can do this by paying a full year of real estate taxes in January and again in December of the same year. Double up your charitable contributions in this same year and take the next year off.

Investing in Retirement:

There are many strategies you can use when saving for retirement. Talk with your tax advisor to find out what strategy will work best for you.

To see more tips and changes visit On The Mark Tax Service website.

Written By

Mark Dent

Hello! My name is Mark, I'm a Berea resident and owner of the Law Office of Mark Dent. I’ve been preparing estate plans since 2003 when I served in the Army as a JAG Attorney. I’m a graduate of Ohio Northern Law School and have bachelor's degrees in both Political Science and Computer Science. My wife and I enjoy running 5ks and exploring the Metro Parks. I am located around the corner from Dick’s Bakery, which I blame for my poor run times and an extra 5 pounds around my midsection. Unfortunately, their donuts are some of the best Ohio has to offer!

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