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Tax Rules that Expired 12/31/21

Posted by Meaden & Moore on Jul 21, 2022 2:50:06 PM

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Think you are up to date on the current tax rules? Check out rules that have expired in 2022 so far…

At the end of 2021, many tax rules we have abided by and known expired as they awaited Congressional bill extenders. Due to today’s political climate, Congress will most likely be unable to extend many rules. Keep yourself informed and read to learn more about what rules have already expired in 2022 thus far:

Selected Expired Individual Tax Items
  • The 1 year only increase in the child tax credit expired at the end of 2021. This credit reverted to $2,000 (from $3,000); reduced the age back to under 17 (from under 18); is no longer fully refundable ($1,400 max); and reverts to lower income phaseouts.
  • The 1 year only increase in the dependent care credit expired at the end of 2021. It reverts to 20% (from 50%); reverts to a low AGI phaseout (at $15,000 it begins reducing from 35% to 20%); and lowers qualified expenses to $3,000 for 1 child ($6,000 for >1) from the one year only amounts of $8,000 and $16,000.
  • The $600 non-itemizer charitable deduction amount expired at the end of 2021.
  • The 2021 increases to the earned income tax credit for taxpayers without children and for older and younger Americans reverts to 2020 rules.
  • The 100% of AGI charity deduction for cash contributions reverted to a 60% limit.
  • The credits for nonbusiness energy property (insulation, storm windows and doors, etc.) and alternative fuel refueling (electric car chargers) expired at the end of 2021.
  • The deduction for mortgage insurance premiums as mortgage interest expired at the end of 2021.
  • Required minimum distributions returned for taxpayers age 72 and over after 2018.
  • Pretax deferrals from wages for childcare revert to $5,000 from $10,500.

Selected Expired Business Tax Items

  • Full expensing of R&D costs changes to a 5-year amortizing asset deduction in 2022.
  • The business interest expense deduction goes from 30% of EBITDA to 30% of EBIT in 2022.
  • The 1099-K reporting threshold of $20,000 dropped to $600 for 2022.
  • The Employee Retention Credit for all businesses, including startups, expired at the end of the third quarter of 2021, however it may still be claimed on amended 941’s for 2021 and 2020.
  • The 3-year recovery period for racehorses two years old or younger reverted to 7 years for 2022.
Please contact us with any questions.


Topics: Tax Planning & Strategies, Accounting & Auditing, Accounting and Tax Resource

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