- Qualified dividends are eligible for a lower tax bracket (0%, 15%, or 20%) depending on your income tax bracket.
- Capital gains rate is 15%. 0% if you use the lowest tax brackets. 20% if you are in the 39.6% bracket.
- LLC's (single-member) are taxed as sole proprietors, unless an election is timely filed to be taxed as a corporation or a Sub-S corp.
- LLC's (multi-member) are taxed as partnerships, unless an election is timely filed to be taxed as a corporation or a Sub-S corp.
- New ObamaCare forms and rules must be filled out and complied with on all returns.
- Mileage rate for business use of vehicle is 56 cents.
- Mileage rate for charity use of vehicle is 14 cents.
- Mileage rate for medical & moving use is 16 cents.
- Sales tax deduction for itemizers available from IRS tables.
- Additional sales tax deduction for large purchased items.
- Travel per diem expenses are $296 for Hi-Cost areas and $202 for Lo-Cost areas after 9/30/2019.
- Travel per diem expenses are $292 for Hi-Cost areas and $198 for Lo-Cost areas after 9/30/2020.
- Standard deduction for married joint $25,100.
- Standard deduction for married separate $12,550.
- Standard deduction for single $12,550.
- Standard deduction for head of household $18,800.
- Personal exemption amount is $0.
- Student loan interest expense deduction is $2,500 maximum.
- Don't forget to use the earned income credit. Use Schedule EIC with your 1040. The earned income credit can range from $2 to as much as $6,500 depending on your individual situation.
- Child tax credit for dependent child under age 17 is $3,000.
- Education credits available for college and post high-school tuition paid for education.
- American Opportunity credit is a max of $2,500 and the Lifetime learning credit is a max of $2,000.
- IRA deduction is $6,000. IRA deduction is $7,000 for those 50 years & older.
- Simple pension plan deferral limit is $13,500 per employee. Add'l $3,000 if 50 years & older.
- 401(k) pension plan deferral limit is $19,500 per employee. Add'l $6,500 if 50 years & older.
- The self-employed rate is 15.3%. This is for those who use Schedule C with 1040.
- Employer & employee rates are 7.65% & 7.65% respectively. Social Security wage base is $142,800 for 2022.
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