Social Security and Medicare: What’s New in 2022

This year, significant changes to Social Security and Medicare brought good and bad news for filers. On one hand, the most significant Social Security cost-of-living adjustment in four decades brought the possibility of higher monthly benefits for some retirees.

On the other hand, however, this wasn’t the case for all taxpayers — and monthly premiums and check deductions increased, too.

Click here to better understand the Social Security and Medicare changes in 2022 and what to expect in the new year.

‘Secure Act 2.0’: How Retirement Savers and Employers Could Benefit

Fundamental changes intended to improve the U.S. retirement system were on the Congressional agenda this year when the H.R 294 – Securing a Strong Retirement Act (known as ‘SECURE Act 2.0’) passed the House of Representatives with strong bipartisan support.

As the end of the year draws close, the bill still needs to clear the Senate.

Additionally, any changes to the bill that Senators introduce must be reconciled with the House’s version before it makes its way to the President’s desk. However, considering the overwhelming support for the legislation from both sides, information about ‘SECURE Act 2.0’ remains relevant as 2022 draws to a close.

In this post, I explore the benefits and possible pitfalls taxpayers will need to be aware of should this bill become law.

The New IRS Taxpayer Experience: What It Means For You

It’s no secret: The IRS has not always excelled in taxpayer services.

Fortunately, as part of a long-term plan to improve customer service issues, they unveiled the first-ever Taxpayer Experience Office (TEO) this year.

To learn more about how this new office could make life easier for you at tax time, click here.

Excess Business Loss Limitation and Net Operating Loss: Your 2022 Guide

Businesses don’t always earn a profit. If you’re a business owner, it’s possible that you’ll have an excess business loss or net operating loss at some point during the year.

Fortunately, tax relief options and deductions may be available to provide crucial tax benefits, especially if you are a small business owner. These can help ease the burden by reducing your tax liability for the current and future years.

However, you’ll need to be aware of some essential factors and limitations to ensure you take advantage of all possible tax planning strategies as they pertain to your particular situation.

Take a look at this article to find answers to common questions about excess business loss limitations and net operating loss so that you can make more informed decisions when preparing your taxes.

Casualty and Theft Losses: What’s Deductible in 2022?

Nobody wants to think about the potential destruction of personal property due to a disaster or loss due to theft.

Nevertheless, it’s essential to account for the possibility of disastrous circumstances to limit the financial toll, recover, and get back on your feet.

However, casualty loss rules are complicated, so there are some things you should know beforehand should the worst happen.

As the Scout motto goes: Be prepared.

To learn more about what personal casualty or theft losses may be deductible on your tax returns, how to calculate your loss, and when to deduct such losses, click here to read this article.

Identity Theft and Your Taxes: What You Need to Know

In today’s digital world, cybercriminals are constantly developing new ways to get personal information and use it to their advantage, which means identity theft is a risk for everyone. When your personal information becomes compromised, it can have far-reaching consequences throughout your life, and having your identity stolen in a tax-related scam can be particularly demoralizing.

Fortunately, an ounce of prevention is worth a pound of cure. Additionally, should the worst happen, there are concrete steps you can take to alert the IRS and begin addressing the problem.

To discover how tax identity theft can happen and what to do if it happens to you, click here.

Business Use of Vehicles: Maximize Your Tax Deduction

If you drive for work, use your car for your job, or even use car-for-hire services or rideshare programs for business purposes, you can deduct expenses related to your vehicle.

For example, you may be able to deduct the costs of operating and maintaining your vehicle, the costs of local transportation and traveling away from home overnight, or other expenses using either the standard mileage rate or actual expenses.

However, tax laws can vary state by state and year to year, and how and when you claim those deductions can impact your tax burden.

Click here to discover how understanding the rules governing business use of vehicle deductions can yield significant tax advantages.

What do NY/NJ PTET Changes Mean for Taxpayers in 2022?

U.S. taxpayers were impacted by sweeping changes implemented with the Inflation Reduction Act this year. Yet, one frequently-debated tax code provision ended up remaining unchanged, despite demands from representatives of high-tax states with Pass-Through Entity Tax (PTET) laws: the SALT cap.

Nevertheless, key state-level changes to the New York PTET and New Jersey’s similar Business Alternative Income Tax (BAIT) have modified the landscape for business owners.

This blog post dives deeper into what 2022’s changes to the NY/NJ PTET laws mean for pass-through taxpayers.

Do You Owe Taxes on Canceled Debt?

Nobody likes to receive an unexpected tax bill, especially when it is related to a financial obligation that no longer applies. That’s why receiving a bill for a canceled debt can be an unpleasant surprise.

Nevertheless, canceled or forgiven debt is often taxable to the debtor as income. That means that even if you no longer need to pay back your lender, you may still owe some money to the IRS.

Fortunately, there are some exceptions, exemptions, and exclusions of which you may be to take advantage.

This article covers debt cancellation, reporting canceled debt, and whether or not you are likely to owe income tax on the canceled amount.

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