Other than some IRS inflation adjustments, the calendar year 2022 has brought limited changes in tax laws for individuals. Many of the provisions that were passed in bills like The Inflation Reduction Act of 2022 affected corporations, such as the corporate minimum tax of 15% for corporations with adjusted federal income over $1 billion dollars. While President Biden has offered some personal income tax and estate planning tax changes in his proposed 2022 budget and tax plans, many experts feel that it is very unlikely that any changes, if approved, will take effect this calendar year.
This report focuses on information that could be helpful for individuals in conjunction with tax planning for the calendar year 2022. It also has a section that shares some key details from President Biden’s suggested American Families Plan and some noteworthy proposals included in the budget and green book from Biden’s recent 2022 Budget Plan. Remember, the Tax Cuts and Jobs Act (TCJA) enacted in 2017 brought many changes to the tax code. The Tax Cuts and Jobs Act included many provisions for individuals that took effect in 2018 but are currently set to expire after 2025. One big uncertainty for all taxpayers is what will happen to the tax code after 2025.
As financial professionals, we try to be proactive when it makes sense. The objective of this report is to share strategies that could be effective if considered and implemented before year-end. Please note that this report is not a substitute for using a tax professional. In addition, many states do not follow the same rules and computations as the federal income tax rules. Make sure you check with your tax preparer to see what tax rates and rules apply to your particular state.
*Please note that this report is not a substitute for using a tax professional. In addition, many states do not follow the same rules and computations as the federal income tax rules. If you have any questions, please reach out to Prestige Wealth Accounting Group or your outside tax preparer to see what tax rates and rules apply to your state.