Tax Relief in 2022
The main thing we see changing for 2022 tax relief is more people qualifying for Offer in compromise. That is settling your tax debt for less than you owe. That is the best result in most cases, when you do qualify for it.
Why do we think this will happen more often? Expenses are going up and people’s available income – which is money they have after expenses – is less. This means more people will qualify for Offer in Compromise.
Standard Deductions Going Up
Another change is a typical raise in standard income tax deductions per individual, usually done to meet cost-of-living. Here’s the new schedule:
- Single & MFS – $12,950
- Married – $25,900
- Head of Household – $19,400
CoronaVirus Tax Relief
As has been par for the course during the global COVID pandemic, the IRS is supporting economic stimulus payments, advance child tax credits, and other economic stabilizers for businesses and individuals impacted by COVID. Families are especially pinched during a time when parents can’t be sure whether the kids will be in school or attending virtual from home, requiring childcare for a parent to work. Therefore, the IRS focuses more help for families.
Earned Income Credit Boosts
It’s going to be easier to claim Earned Income Tax Credit (EITC) than ever before! Changes made in 2022:
- the maximum credit amount is nearly tripled for filers without children
- some taxpayers can use their 2019 income to figure their EITC
- higher income caps before EITC phases out
- some filers may still receive EITC even if they receive investment income up to $10K
- children can be claimed even if they don’t have SSI numbers yet
What is the best thing to do regarding your tax relief?
The best thing you can do for your tax relief case is to find out if you got a good shot. If you don’t qualify we will send you in the right direction to get your case done. Give us a call at 888-515-4829 or go to tp.tax/start