Tuesday, January 25

Income Tax Brackets 2022: Which are the new tax figures and changes you need to know?

April 18 is coming, and you need to start filing your 2021 tax returns. As you prepare to put everything in order, we’ll dig into the information that every taxpayer needs to know.

Let’s start from the beginning.

How to file taxes?

You could either do it electronically, through the mail, or with a professional.

Paper filing: It is the longest of all three options for the IRS to process. However, it is the traditional way to do it.

You sent the tax file to the address of your convenience after completing the 1040 form.

Online: There’s a specific software designed to help file taxes electronically. Tax preparation software is considered the easiest way to do it.

Databases are updated every year to help taxpayers if there’s a significant or simple change in the tax law.

Electronic submissions are safes and have faster results.

Professionals: Hiring an accountant or a company is the easiest way to file taxes. However, it has an extra cost, and you will provide personal information to a third person.

Is it my obligation to file taxes?

Not everyone should file income taxes. It depends on your wage and earnings. Nevertheless, there are deductions that you can make through the IRS and obtain money back.

As a single taxpayer, your tax declarations begin by earning $12,400 or more gross income during the year.

If you file wrong information, file information after the date limit, or do not file information at all, you can be penalized or trigger an IRS audit.

Calculate your gross income and determine your filing status and the fitted tax form.

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Non-taxable income

According to the information provided by Jessica Walrack and Marc Wijno, these next kinds of income are exempt from taxes.

-Child support payments

-Welfare benefits

-Gifts, bequests, and inheritances

-Awards for damage from personal injury and illness

-Cash rebates from manufacturers

-Reimbursements for qualified adoption expenses

These are diverse forms of income that are usually not taxable.

-Life insurance payouts are typically not taxable. However, if you redeem the policy for cash, any amount that exceeds the cost of the policy is taxable. Early withdrawals are also taxable.

-Local Scholarship payments used for tuition and course textbooks are not taxable

What if I file taxes and I’m married?

For married couples, you can find four different ways to file taxes. They are specific but easy to understand.

If you file separately from your husband or wife, the minimum begins at $9,950 per year.

Filing jointly, the minimum taxable income is $14,200. It all depends on which of the four ways you decide to file.

When is the the D-Line for your Tax Files?

April 18.

The tax rates themselves didn’t change from 2021 to 2022.Nevertheless, the 2022 tax brackets were adjusted to account for inflation.

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