A new tax year also brings with it several changes to tax laws.  Here are a few of the more notable changes:

• For the 2022 tax season, the standard deduction amounts will be increased slightly as in previous years. The new amounts for 2022 tax returns are below. The increased standard deduction will continue to allow more individuals to file without itemizing deductions on Schedule A.

• IRA contribution limits for 2022 is $6,000 with a $1,000 catch-up amount for taxpayers over age 50.  Contributions for 2022 can be made up until the filing deadline of April 15, 2023. 

• HSA account contribution limits have increased to $3,600 self-coverage only and $7,300 for family coverage.  These contributions can also be made for 2022 up until April 15, 2023.

• Again, this year, the IRS requires all taxpayers to answer a virtual currency question on page 1 of Form 1040: “At any time during 2022, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”

Examples of virtual currency are Bitcoin, Ether, Roblox, and V-bucks.  If you sold or otherwise exchanged virtual currencies or used virtual currencies to pay for goods or services, or held virtual currencies as an investment, generally there will be tax consequences and it needs to be reported on your tax return.

• If members of your tax household received an economic impact payment (stimulus payment) or an advance on the child tax credit, it will need to be reported on your tax return.  It is not taxable but is used to determine if you qualify for the recovery rebate credit. 

Finally, in order to prepare your return, we are required to have copies of all of your W-2’s, 1099’s from retirement, interest, dividends and brokers, Form 1095 for health insurance, bank Forms 1098 and any other official IRS documents.

Tax Organizers:  To assist you in gathering your tax information, we have tax information organizers available on our website:  www.LHPC.us.  If you prefer printed copies, simply stop in or give us a call at (574) 533-8857. 

Important Reminders:

• Filing an Extension does not give you an extension to pay!  Even if an extension is filed, the IRS and State will assess penalties and interest on the amount due from the original due date.
• If you owe tax and cannot pay, file your returns anyway in order to avoid late filing penalties.
• Our extended office hours will start on Jan. 26^th.  Before that, our offices will be open 8a-5p Mon-Fri. 

Payment Terms:  As always, payment for services is due when you pick up your returns.  

* * * * * We will not be able to file any return that has not been paid for. * * * * *

We do, however, offer the following payment options: 

• Cash, check or money order,
• Fee Collect ($40 additional fee) - This service allows you to have your tax preparation fees deducted directly from your federal tax refund.

From all of us here at Block Advisors and H&R Block, we wish you a very Blessed New Year!!