There are a few changes for 2022 that could affect retirees. Listed below are a few changes you may want to watch out for:
- Extra Standard Deduction for Seniors over 65 - A single 65-year-old taxpayer will get a $14,700 standard deduction for 2022.
- Credit for the Elderly or Disabled
- 2022 Changes to retirements plans - phase-out ranges for Traditional IRA income, Roth IRA contributions, and Saver's Credit Income have changed for 2022
- Inflation Reduction Act of 2022
- Premium Tax Credit
- Charitable Contributions - During COVID, taxpayers could take up to $600 charitable donations on their tax return if they claimed a standard deduction. For 2022, those who claim the standard deduction can not claim charitable contributions.
The standard deductions for 2022 are as follows:
- Single or Married Filing Separately - $12,950
- Married Filing Jointly - $25,900
- Head of Household - $19,400
- Over 65, an additional $1,750
You can itemize for 2022 if your deductible expenses on Schedule A exceed the 2022 standard deduction. A list of Schedule A expenses would be:
- Unreimbursed Medical and Dental Expenses - you can only deduct the medical amount that exceeds 7.5% of your 2022 adjusted gross income
- Long-term Care Insurance Premiums - deductible to the extent that the premiums exceed 10% of your adjusted gross income
- Taxes Paid - deductions for state and local sales tax and property taxes but cannot exceed $10,000
- Interest You Paid - Home mortgage interest reported on Form 1098
- Charitable Contributions
- Casualty and Theft Loss
- Job Expenses and Other Miscellaneous Deductions - limited to 2% of your adjusted gross income
For more information on standard and itemized deductions, see the link below:
Standard vs. Itemized Deductions
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