5 Considerations When Filing Your 2022 Tax Return

The weather is getting warmer. The days are getting longer, and the seasons shifting can only mean one thing: tax season is here again. Shifting from pandemic-specific tax rules that applied in 2021 into a post-Inflation Reduction Act world may be causing some confusion for taxpayers. What credits still apply? Which don’t? How will stimulus payments or rebates impact my return? Knowing how things have, or haven’t, shifted since the 2021 tax year can help you better collect necessary documents and prepare your return.

  1. If you received stimulus or other relief/rebate payments from your state in 2022, you will likely not need to pay federal income taxes on these payments. Residents in the following states will not have to pay income tax on state payments: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Residents of Georgia, Massachusetts, South Carolina, and Virginia will not need to pay income taxes on payments made as a refund of state taxes as long as the taxpayer did not receive a state tax benefit in the year the taxes were deducted. Click here to learn more.
  2. The filing deadline is April 18th for most taxpayers, but Elm3 will only be taking appointments through April 10th. Natural disaster victims in Alabama, Georgia, and California have until May 15th to file their return. Unless you received stimulus or rebate funds, it is usually in your best interest to file earlier rather than later. You are less likely to become the victim of tax fraud, and you are more likely to receive your refund in an expeditious manner. If you are concerned about tax fraud and also need to wait to file your return, you can easily apply for an Identity Protection PIN through the IRS website. If you apply for a PIN, any fraudsters attempting to file a return with your stolen social security number or EIN will be unable to do so because they do not have your PIN.
  3. The Child Tax Credit reverted back to $2,000 per child for the 2022 tax year. In 2021, the maximum credit increased to $3,600 and portions of the credit were paid out in advance. With the reversion of the credit to $2,000, parents may notice a smaller tax refund for the 2022 tax year.
  4. The Electric Vehicle Credit changed partway through 2022. The size of the credit, and whether or not you are eligible, depend on when you bought your vehicle, what kind of vehicle you bought, and where the vehicle was assembled. The maximum credit is $7,500, and the full size of your credit depends on the type of electric or “clean” vehicle that you purchased. If you bought the vehicle before August 16th, 2022, even if the vehicle was delivered after August 16th, you may be eligible to claim the credit regardless of where the vehicle was  assembled. If you bought and purchased the vehicle between August 16th and December 31st, the vehicle’s final assembly must have occurred in North America for you to be eligible for the credit. You can visit the IRS website to learn more about vehicle eligibility and credit information.
  5. Some taxpayers can file their return for free. If your AGI was $73,000 or less in 2022, you are eligible to use the IRS Free File program. The program contracts with seven providers who will complete and file your federal income tax return for free. However, these providers may charge to complete and file your state income tax return.

If you have any questions about changes to tax laws in 2022, please do not hesitate to reach out to our experienced tax team by calling 678-297-9500. We look forward to working with you this year and beyond.

By Categories: Blog, TaxesPublished On: February 10th, 2023