TAX PROVSIONS WHICH EXPIRED OR ARE EXPIRING
Some beneficial tax provisions will expire and not be available to taxpayers after 2021 And as of 12/31/22 Congress is not taking steps to extend them.
- The Enhanced Child and Dependent Care Credit which provided a fully refundable tax credit for as much as $16,000 expired in 2021 and the maximum credit in 2022 is not fully refundable and cannot exceed $2,100.
- The Enhanced Child tax Credit which provided a fully refundable credit of$3,600 per qualifying child under age six, a $3,000 credit for each child between the ages of six and eighteen and a $500 non fully refundable credit for other dependents will expire and revert to a non-fully refundable credit of $2,000 for each child under the age of 17 and a $500 credit for other dependent children.
- The enhanced earned income tax credit also expired and is not available for the 2022 tax year.
- The Non-itemizer Charitable Contribution Deduction of $300 for individuals or $600 per married couple expired in 2021.
- The Full Deduction of Business Meals expires in 2022 and in 2023 only 50% of most business meals will be deductible.
There are other expiring provisions, but these are the most impactful expirations.
One new provision for 2022 has been postponed. In prior years payment card transactions totaling $20,000 or more were reported to the IRS on form 1099-K. For 2022, the threshold was scheduled to be reduced to $600. A very big difference. The change to the $600 threshold was postponed by the IRS and cot applicable for 2022 transactions.
There are other expiring provisions, but these are the most impactful expirations.
One new provision for 2022 has been postponed. In prior years payment card transactions totaling $20,000 or more were reported to the IRS on form 1099-K. For 2022, the threshold was scheduled to be reduced to $600. A very big difference. The change to the $600 threshold was postponed by the IRS and cot applicable for 2022 transactions.
