Updates for 2022 Individual tax returns

In 2022, the IRS issued a broader definition of digital assets, which includes “any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology.” If in 2022 you held or used digital assets including convertible virtual currency and cryptocurrency, stable coins, or non-fungible tokens (NFT), reporting will be required on your income tax return. You are required to track the basis of any digital assets received, sold, sent, gifted and/or exchanged. Proceeds or value of items received in exchange for the digital assets must also be reported.

For the tax year 2022, charitable contributions deduction is limited to 60% of adjusted gross income for taxpayers who itemize deductions. There is no longer a deduction for those who do not itemize deductions.

The standard mileage rates for business, medical and moving purposes were increased for the final six months of 2022, to better reflect the increase in fuel prices. Therefore, you will need to separately provide mileage for January 1 to June 30 and for July 1 to December 31.

In 2022, the child tax credit returned to pre-2021 rules. The credit is limited to $2,000 per child, partially refundable up to $1,400. Children must be under age 17 on December 31st to be considered eligible.

Please contact us with any questions or for additional information.