The biggest tax changes to know before filing your 2022 return

The biggest tax changes to know before filing your 2022 return

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Selected tax credits have been reduced 

The baby and dependent treatment tax credit score, which may possibly assistance offset the cost of care for kids underneath age 13 or grownup dependents, has also been minimized for 2022.

In 2021, the credit jumped to up to $8,000 for one qualifying particular person or $16,000 for two or additional dependents. Nevertheless, for 2022, people caps returned to $3,000 and $6,000, for one particular or various dependents, respectively.

You may possibly get Form 1099-K for third-social gathering payments

You can use crypto losses and other capital losses to offset capital gains

Austin Chau, a CFP and prosperity advisor at Menlo Asset Administration in Menlo Park, California, explained private transactions like reimbursing your roommate for payments or dinner usually are not taxable.

What is additional, you may only owe taxes on income, he claimed. For instance, if you expended $150 on concert tickets in 2022, and sold them for $200, the $50 revenue is taxable, Chau reported.

Even though the IRS says you should not receive Form 1099-K for own transfers, experts say it is really doable, and the error may possibly call for you to get hold of the issuer or make changes to your tax return.

It’s more challenging to assert the charitable deduction