Small Business Taxes & Management

Special Report

Tax Law Changes for 2022


Small Business Taxes & ManagementTM--Copyright 2022, A/N Group, Inc.


There are a number of tax changes for 2022 and 2023 that could affect your tax planning. Most, but not all, of the changes affect individual returns. We've listed the ones affecting the most taxpayers below.


Provisions That Expired at the End of 2021--Individuals

Child and Dependent Care Tax Credit The refundability and enhanced child and dependent care credit is gone for 2022 (Sec. 21).

Child Tax Credit The increased credit amount, credit for 17-year olds, full refundability with no earned income phase-in, and the safe harbor for excess aqdvance payments is gone (Sec. 24).

Dependent Care Assistance Increased exclusion for employer-provided dependent care assistance (Sec. 129)

Mortgage Insurance Treatment of premiums for certain qualified mortgage insurance as qualified resident interest.

Charitable Contributions Charitable contributions no longer deductible by non-itemizers.

Charitable Contributions Modification of the limitation on charitable contributions.

Child Tax Credit Advance payment of child tax credit expires.

Flexible Spending Arrangements Special rule for health and dependent care flexible spending arrangements.

COBRA Premium assistance for COBRA continuation coverage.

Earned Income Credit Special rule for dertermining earned income for the credit.

Credit for Sick Leave Credit for sick leave for certain self-employed individuals.

Credit for Family LeaveCredit for family leave for certain se4lf-employed individuals.


Provisions That Expired at the End of 2021--Businesses

Racehorses Three-year recovery period for racehorses two years old and younger.

Payroll Credits The payroll tax credit for paid family leave (Sec. 3132) and the credit for paid sick leave (Sec. 3131). Also expiring in 2021 was the employee retention amd rehiring tax credit.


Provisions That Are New in 2022--Individuals

The big change here is to energy incentives. The credit for nonbusiness energy property has been extended, modified, and enhanced. The lifetime maximum for most items such as energy efficient windows and doors, HVAC equipment, etc. has increased to $1,200. In addition, the credit has been extended (it expired at the end of 2021) through 2034.

The rules for clean vehicles has changed substantially. The old rules which put a cap on the credit based on the number of vehicles produced by a manufacturer is gone. In it's place is a number of new requirements including the amount of domestic content in the vehicle.


Provisions Expiring in 2022--Businesses

An item that affects many taxpayers that's expiring at the end of 2022 is the !00 percent deduction for business means eaten at a restaurant. Beginning in 2023 once again only 50 percent of the cost will be deductible.

Through 2022 business taxpayers could take 100 percent bonus depreciaion, writing off the full cost of the equipment in the first year. Beginning in 2023 bonus depreciation drops to 80 percent of the cost of the equipment.  

Copyright 2022 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536

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--Last Update 12/12/22