![]() ![]() Medical expenses must not be reimbursable by insurance or other sources and do not qualify for the medical expense deduction on a federal income tax return.Ī qualified individual must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance with the exception of insurance for accidents, disability, dental care, vision care, or long-term care.įor calendar year 2022, a qualifying HDHP must have a deductible of at least $1,400 for self-only coverage or $2,800 for family coverage and must limit annual out-of-pocket expenses of the beneficiary to $7,050 for self-only coverage and $14,100 for family coverage. The same $1,150 amount is used to determine whether a parent may elect to include a child’s gross income in the parent’s gross income and to calculate the “kiddie tax.” For example, one of the requirements for the parental election is that a child’s gross income for 2022 must be more than $1,150 but less than $11,500.Ĭontributions to a Health Savings Account (HSA) are used to pay the account owner’s current or future medical expenses, their spouse, and any qualified dependent. Both the exemption and threshold amounts are indexed annually for inflation.įor taxable years beginning in 2022, the amount that can be used to reduce the net unearned income reported on the child’s return that is subject to the “kiddie tax” is $1,150. Also, the phaseout threshold increases to $539,900 ($1,079,800 for married filing jointly). In 2022, AMT exemption amounts increase to $75,900 for individuals (up from $73,600 in 2021) and $118,100 for married couples filing jointly (up from $114,600 in 2021). In 2022, the standard deduction increases to $12,950 for individuals (up from $12,550 in 2021) and to $25,900 for married couples (up from $25,100 in 2021). Standard deductions also rise, and as a reminder, personal exemptions have been eliminated through tax year 2025. The tax rate structure, which ranges from 10 to 37 percent, remains similar to 2021 however, the tax-bracket thresholds increase for each filing status. In 2022, a number of tax provisions are affected by inflation adjustments, including Health Savings Accounts, retirement contribution limits, and the foreign earned income exclusion. ![]() ![]() From standard deductions to health savings accounts and tax rate schedules, here’s a checklist of tax changes to help you plan the year ahead. Every year, it’s a sure bet that there will be changes to current tax law, and this year is no different. ![]()
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