Tax Season 2022: What You Need To Know (And Looking Ahead to 2023)

The coronavirus threw several monkey wrenches into 2021 tax season—including giving all of us procrastinators an extra month to file! But 2022 tax season will be back to business as usual . . . well, sort of.

Some new things this year include an increase in charitable giving deductions (if you don’t itemize) and the expanded Child Tax Credit (parents, you noticed some extra cash in your bank account, right?).

We’ll dig into both of those changes, plus a few more, a little later. But first, let’s kick things off with the main details you need to know for 2022 tax season:

  • The big tax deadline for all federal tax returns and payments is April 15, 2022.

  • The standard deduction for 2021 increased to $12,550 for single filers and $25,100 for married couples filing jointly.

  • Income tax brackets increased in 2021 to account for inflation.

As for the 2023 tax season, here's what you'll want to know when the time comes:

  • The standard deduction for 2022 (which will be useful when you file in 2023) will increase to $12,950 for single filers and $25,900 for married couples filing jointly.

  • The income tax brackets will also increase in 2022.

But that’s just scratching the surface! Let’s break down the details so you can file your taxes with confidence this year.

Income Brackets and Rates for 2022 and 2023 Tax Season

Here’s a refresher on how income brackets and tax rates work: Your tax rate(the percentage of your income that you pay in taxes) is based on what tax bracket (income range) you’re in.

For example:

If you’re single and your income is $75,000, then you’re in the 22% tax bracket. But that doesn’t mean your tax rate is a flat 22%. Instead, part of your income is taxed at 10%, another part at 12%, and the last part at 22%. (We break it down in the chart below.)

For the 2021 tax year, the tax rates are the same—but there are some slight changes to the brackets. Basically, the brackets have been adjusted by a few hundred dollars from 2020 to account for inflation. 2022 tax brackets also look a little different.

Higher Standard Deductions in 2021 and 2022

When you pay taxes, you have the option of taking the standard deduction or itemizing your deductions—calculating your deductions one by one. Itemizing is more of a hassle, but it’s worth it if your itemized deductions exceed the amount of the standard deduction.

For tax years 2021 and 2022, the standard deduction went up slightly to adjust for inflation.

Not sure whether or not you want to use a tax pro this year or file yourself? If you are comfortable filing on your own, go right ahead! But if things get complicated, you may want to reach out to a tax professional who is up-to-date with the latest changes in tax laws and

Remember, anyone can plug in numbers, but a Certified Public Accountants, Tax Accountants and Tax Attorneys may be able to prepare your return in a fraction of the time you would take to prepare it yourself. Plus, uncover deductions, credits, or other tax strategies you aren’t aware of that could significantly lower your tax bill. In addition, we can represent you in front of the IRS.

Keep in mind that every situation is different regarding taking the standard deduction or itemizing.

Tax Deductions and Credits to Consider for Tax Season 2022

The closest things to magic words when it comes to taxes are deductions and credits. Both help you keep more money in your pocket instead of Uncle Sam’s, but in slightly different ways.

Tax deductions help lower the amount of your income that can actually be taxed. Some deductions are only available if you itemize your deductions, while others are still available even if you decide to take the standard deduction.

Tax credits, on the other hand, are dollar amounts actually subtracted from your tax bill, and there are two types: refundable and nonrefundable. If a credit is greater than the amount you owe and it’s a refundable credit, the difference is paid to you as a refund. Score! If it’s a nonrefundable credit, your tax bill will be reduced to zero, but you won’t get a refund. Still a win!