Must Know Tax Facts For This Year

tax news

Money Thought Leader: Joy Alford-Brand

Well, get ready for a super fun personal finance article this month.

Yes reader, it’s time to talk about filing your tax return. Here it is March and that means, tax season is just around the corner. Time to get ready for filing your taxes, if you haven’t already. How fun is that?

Blazing Tax Wisdom!

I wish I had some blazing tax wisdom to impart as we get ready for that April 18th deadline. The most important things I can talk about regarding your 2021 taxes are the Child Tax credit pre-payments and the last economic impact payments that are still going out. Yep, you read that right. Some people who did not qualify for payments initially but then came into qualifying status within the economic impact payment period, are still getting payments. How about that?

“You’ll want to be sure of that amount so you can include it on your tax return.”

So, the expanded child tax credit that was part of the American Rescue Plan will come into play on your 2021 tax return, if you qualified for it. That means you could see a significant difference in your refund, unless you received advanced payments that started last year. 

Either way, you will want to make sure you are including all the documentation about any payments you got from the government as a result of the pandemic. At the very least, you should have received a letter from the IRS for any economic impact payment you were paid in 2021. You’ll want to be sure of that amount so you can include it on your tax return. Yay!!

More Fun Tax News:

Now, I do have other tax news to talk about for 2022 and 2023. I figure we might as well tear the Band-Aid off and tell you this good news while I have your attention. We are coming up on some changes to the standard deduction and tax brackets in 2022 which will affect you when you file in 2023. 

First of all, the standard deductions will increase to $12,950 for single filers and $25,900 for married couples filing jointly. The tax brackets are going up a bit, too. If you would like to learn more about tax brackets and what they mean for you, there are lots of great websites you can check out online by searching “tax brackets 2022.” Reading up on tax brackets might help you if you’re having insomnia, too. We’ll call that a ‘two-fer.’ Learning about tax brackets AND getting a little shuteye.

“We’ll call that a ‘two-fer.’ Learning about tax brackets AND getting a little shuteye.”

Second, if you itemize on your tax return, don’t forget to include any medical expenses you might have. Of course, this means you can’t use the standard deduction so, you will want to make sure your medical expenses are more than the standard deduction amount. If they aren’t, it’s better to stick with the standard deduction, of course.

For women over forty-five, it is entirely possible to have medical expenses that are far more than the standard deduction. Especially, if you are single. The cost of medical procedures these days can easily blow right past that $12,550 standard deduction amount for 2021 and right into bankruptcy. Wow, that was a real downer, wasn’t it?

Some Good News:

Okay, let’s end on a much happier note. Here are a couple of things for you to be happy about on the economic front, starting with news about the pandemic. Experts are beginning to talk about the end of the pandemic and that we will hopefully start to see some relief by the spring of 2023. I sincerely hope this is true and I know you do, too! 

I have also heard some money gurus talking about some inflation relief throughout 2022. Yes, there are things going on in other parts of the world (ahem), that could affect our gas tanks. However, relief on the inflation front is great news for our economy, the cost of living, and your wallet. So, I’m hoping one will help offset the other. In any event, all this means that better days are coming, ladies and it’s about time!

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Joy Alford Brand

About the Author:

Joy Alford-Brand is an author, public speaker and attorney.  She graduated with Bachelor’s Degree in History from Wright State University in Dayton, Ohio in 1994 and she received her Juris Doctor from Ohio State University College of Law in 1998. Her main area of practice is Bankruptcy. She is admitted in North Carolina where she lives and works. Joy founded newcashview.com in 2015 as a platform through which she could help others work toward financial freedom and peace of mind!  For more information, check out newcashview.com.