Recent Tax Updates

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Tax Season 2022 Start Date and other Reminders

By Mark Castro, CPA
January 20, 2022

The IRS announced in a News Release on January 10, 2022 that the start of the 2022 tax filing season begins on Monday, January 24, 2022.

Below are additional reminders for the 2022 Tax Season.

EITC Election to Use 2019 Earned Income

Taxpayers who qualify for EITC may elect to use their 2019 earned income to figure their 2021 EITC if their 2019 earned income is more than their 2021 earned income.

For more details see the Form 1040 instructions for line 27a.

Charitable Contributions 2021

Taxpayers who do not itemize may take a deduction on Form 1040, line 12b of up to $300 ($600 if MFJ) for cash charitable contributions that they made in 2021.

2020 Coronavirus related Retirement Distribution

Where to report amount that is taxable on the 2021 return

Those taxpayers who took a Coronavirus related distribution from their retirement account and elected to have the distribution taxed over three years will report the amount that is taxable in 2021 on Form 8915-F (Qualified Disaster Retirement Plan Distributions and Repayments).

See the draft Form 8915-F instructions for more details.

EITC for taxpayers with no children

For Tax Year 2021, the following individuals with no children may be eligible for EITC (depending on their income):

Individuals over 18
Students attending school over 23
Former foster youth or qualified homeless youth over 17

For more info see page 7 of the Form 1040 instructions.

Elimination of Tuition and Fees Deduction

The Tuition and Fees Deduction (Form 8917 and Form 1040 Adjustment to Income) is no longer applicable for 2021. It has been replaced by increasing the income limitation to $180,000 for Married Filing Joint filers ($90,000 for single, head of household or qualifying widow(er)) for the lifetime learning credit on Form 8863 (Education Credits).

For more information, see the Federal Tax Law Changes for 2021 article or the following on the IRS website:

Tuition and Fees Deduction – Form 1040 instructions, page 6 (What’s New for 2021).
Lifetime Learning Credit change – Form 8863 instructions

Mark Castro, CPA

Mark has been with CrossLink Professional Tax Solutions (CPTS) since 2008, but has been in the tax industry since 1990. As the government/tax industry liaison for CPTS, Mark has been very active in working with the IRS, States, and other tax industry members to help improve communications, promote standardization, and simplification of eFile systems. Mark has also been active with industry associations as a board member of the National Association of Computerized Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA) for many years. These two associations work with the IRS and States to help solve key eFile and electronic tax system issues and work to improve the operations of the State and IRS eFile systems.

Recent Tax Updates

2023 Tax Filing Deadline

The federal 2023 tax filing deadline for Tax Year 2022 individual tax returns, also known as Tax Day, is Tuesday, April 18, 2023. This day is also the filing deadline for calendar year C Corporations (1120) and Estate/Trust (1041) returns.

April 18, 2023

32 Latest States with a Pass-Through Entity Tax

Pass-Through Entity Tax A total of 32 states have enacted legislation that creates a pass-through entity tax as a workaround to the $10,000 cap on

March 31, 2023

Understanding NFT Taxes

Today’s crypto audience is seeing digital artists’ lives changed by the increase in sales circulating around NFTs, leading investors to wonder about NFT taxes.

March 30, 2023

IRS Document Upload Tool Now Available for Certain Notices

The IRS announced on February 16, 2023 that they will now give taxpayers who receive certain notices requesting them to send documentation the option of uploading the documents via their secure IRS document upload tool instead of mailing them in.

February 23, 2023

Form 8962 premium tax credit health insurance

Form 8962 Reminders for Tax Season 2023

Tax preparers must remember that if a taxpayer received an advance premium tax credit (subsidy) to help pay for their health insurance that they obtained through an Exchange, they must complete (including the reconciliation of the advance premium tax credit) and include the Form 8962 (Premium Tax Credit) with their federal return.

January 30, 2023