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Blog - Tax Related

Monday, 23 January 2023 18:34

22 Questions About 2022 Taxes

With the new year underway, it’s time to turn our attention to another annual milestone — Tax Day. To help, I thought I'd provide an abridged tax guide so you can know exactly what to expect as you prepare to file. 


The big picture is this: When it comes to the 2022 tax year, it’s pretty clear it’s the year of the reset. The IRS rolled out many credits, increases, and stimulus payments in 2020 and 2021 to help taxpayers weather the pandemic and its subsequent fallout. 


Now, provisions like the child tax credit, the earned income tax credit, and the child and dependent care credit are reverting back to their pre-pandemic parameters.  That said, here are 22 questions — and answers — about the 2022 tax year. 


General Tax Questions


1. When is the deadline for filing taxes this year?

The deadline for filing taxes is Tuesday, April 18, 2023.


2. What are the tax rates and brackets for 2022?

2022 Marginal Tax Rates

Single Filer

Married Filing Jointly 

Head of Household 

Married Filing Separately 
































Over $539,901

Over $647,851

Over $539,901

Over $323,926


3. How do tax brackets work? 

Here’s a quick review:

The tax bracket that the highest dollar of your income falls into is called your marginal tax rate. But because of the U.S. tax system, your tax liability isn’t simply your marginal rate multiplied by your taxable income. The rate you pay is your effective tax rate. Here’s a real-life example that shows how it works: 

Let’s say Kelly is a single filer with $50,000 in taxable income. 

  • From $0 to $10,275, Kelly is taxed at 10%.
  • From $10,276 to $41,775, she is taxed at 12%.
  • From $41,776 to $50,000, Kelly is taxed at 22%.

Kelly’s marginal tax rate is 22%. But once she runs the calculations, Kelly will pay around 12% of her income. This is her effective tax rate, equal to about $6,000.


4. What is the standard deduction for 2022?

For 2022, the standard deduction has increased slightly to adjust for inflation.

Filing Status






Married Filing Jointly



Married Filing Separately



Head of Household



*Note that if you are age 65 or older or blind, your standard deduction is higher. If you fall into one of these categories, your standard deduction is increased by $1,750 if you’re single or $1,400 if you’re married. 


5. Should I itemize or take the standard deduction?

The option you choose depends on the one that will maximize your tax benefits. Taxpayers usually claim the option that lowers their tax bill the most. You get to decide which is better for you each year.

The standard deduction allows you to deduct the set amount from your taxes, no questions asked. If you plan to itemize, you’ll need documentation to verify your qualifying expenses from a list approved by the IRS.


6. What is a tax credit, and which ones should I take?

A tax credit is the amount of money you're permitted to subtract, dollar for dollar, from any income taxes you owe. Here are seven of the most common ones: 

  • Child Tax Credit: For 2022, the child tax credit is non-refundable. The tax break reverts to the previous amount — up to $2,000 per child under age 17. Note that this credit starts phasing out for higher-income taxpayers.
  • Earned Income Tax Credit (EITC): The EITC helps low- to moderate-income workers and families get a tax break. If you were married filing jointly and earned less than $59,187  in 2022, you may qualify for the credit or even a refund check. Find out if you qualify by looking at the 2022 EITC tables.
  • Child and Dependent Care Credit: For 2022, the child and dependent care credit is non-refundable, and the maximum credit percentage is 35%. The credit allows up to $3,000 in expenses for one child or disabled person and $6,000 for more than one. The full child and dependent care credit will only be allowed for families making less than $15,000 a year in 2022 (down from $125,000 in 2021).
  • Adoption Tax Credit: Families that grew through adoption might qualify for the Federal Adoption Tax Credit. Adoptive parents must earn $223,410 or less to be eligible for the full credit, which provides up to $14,890 per eligible child — defined as any person under the age of 18 that is mentally or physically unable to take care of themselves.
  • American Opportunity Credit: The American Opportunity Credit allows parents to claim up to $2,500 per student for tuition, activity fees, books, supplies, and equipment during the first four years of college. Students must be enrolled at least half-time.
  • Lifetime Learning Credit: The 2022 Lifetime Learning Credit is worth as much as $2,000 to help offset higher education expenses. Taxpayers can use the credit for tuition and related expenses paid for undergraduate, graduate, and professional degree courses for themselves, their spouses, or dependents.
  • Saver’s Credit: This tax credit is worth up to $1,000 ($2,000 if married and filing jointly) for mid-and low-income taxpayers who contribute to a retirement account.


7. Are there any deductions for student loan interest? 

Yes. You may be able to deduct up to $2,500 of student loan interest paid in 2022. Keep in mind the credit amount is gradually reduced if your modified AGI reaches a certain threshold.


8. What are the standard mileage rates for 2022? 

The 2022 standard mileage rate for business driving from January 1 to June 30 is 58.5¢. Effective July 1 through December 31, 2022, the IRS raised the mileage rate to 62.5¢.


9. What are the medical travel and military mileage rates for 2022? 

The mileage rate for medical travel and military moves is 18¢ for the first six months of 2022 and 22¢ for July through December.


Retirement Tax Questions

10. What are the retirement plan contribution limits for 2022?

2022 Retirement Plan Contribution Limits and Catch-Up Contributions:

  • 401(k), 403(b), and 457 plans: Contributions for these plans are capped at $20,500 for 2022. Taxpayers 50 and older can once again put in $6,500 more as a "catch-up" contribution.
  • Simple IRAs: The 2022 cap on contributions to SIMPLE IRAs is $14,000, plus an extra $3,000 for people age 50 and up.
  • Traditional and Roth IRAs: Limits for IRAS are $6,000, plus $1,000 as an additional catch-up contribution for those aged 50 and up.


11. What about required minimum distributions (RMDs) for 2022? 

The IRS updated the table used to calculate required minimum distributions (RMDs) to account for longer life expectancies beginning in 2022. See the updated table here.


12. Are there any tax breaks for senior adults and retirees?

Yes! Here are a few to look for:

  • Larger standard deduction: The standard deduction for seniors is $1,750 higher for those younger than 65 who file single or head of household. Married filing separately or jointly taxpayers receive a $1,400 boost in the standard deduction.
  • Property tax breaks: Property tax rules differ by state and local jurisdiction. In some areas, people above a certain age who earn below a particular income level qualify for property or school tax exemptions. Be sure to look at specific rules in your area.
  • Credit for the elderly and disabled: To qualify for this credit, you must have an AGI below $17,500 ($25,000 if both spouses are 65 and older) and Social Security and pension income under $5,000 ($7,500 for couples).
  • Additional IRA contribution: Employees 50 and older can save an additional $1,000 in an IRA for a total of $7,000 in 2022.
  • 401(k) catch-up contributions: Older workers with a 401(k) plan can make catch-up contributions. If you were 50 or older in 2022, the catch-up limit is $6,500 for workplace plans.
  • No early withdrawal penalty: Once you turn age 59½, you can withdraw money from your IRA for any reason without the 10% penalty. Finally!
  • Qualified charitable distributions: Retirees aged 70½ and older who give up to $100,000 directly from their IRA to a qualified charity won’t owe income tax on the gift.
  • HSA contribution limit: Individuals aged 55 or older by the end of the 2022 tax year can contribute up to $4,650 to a health savings account (up $50 from 2021).
  • Long-term care insurance premium limits remain the same: Taxpayers 71 or older can write off up to $5,640 per person.


Miscellaneous Tax Questions

13. What are the lifetime estate and gift tax exemptions for 2022?

The lifetime estate exemption for 2022 jumped from $11.7 million to $12.06 million ($24.12 million for couples).

The gift tax exclusion rose to $16,000 per recipient. This means you can give up to $16,000 to each child, grandchild, or any other person in 2022. So long as you stay below the limit, neither you nor your recipient will be required to file a gift tax return or tap the lifetime estate and gift tax exemption.


14. What are the capital gain rates for 2022?

Remember, if you sold stocks, mutual funds, or other capital assets that you held for at least one year, any gain is taxed at a 0%, 15%, or 20% rate. 

The 0% rate applies to those with taxable income:

  • Up to $41,675 for individual taxpayers 
  • Up to $55,800 for head of household filers 
  • Up to $83,350 for married filing jointly returns 
  • Up to $41,675 for married filing separately returns

The 15% rate applies to those with taxable income: 

  • $41,676 to $459,750 for individual taxpayers 
  • $55,801 to $488,500 for head of household filers 
  • $83,351 to $517,200 for married filing jointly returns
  • $41,676 to $258,600 for married filing separately returns

The 20% rate applies to those with taxable income: 

  • Over $459,751 for individual taxpayers or married filing separately
  • Over $488,501 for head of household filers 
  • Over $517,201 for married filing jointly returns
  • Over $258,601 for married filing separately returns

You can get a general idea of your after-tax investment gains with a capital gains calculator.


15. What is the Residential Clean Energy Credit?

The Inflation Reduction Act, signed into law on August 16, 2022, renamed the former Residential Energy Efficient Property Credit to the Residential Clean Energy Credit. For 2022, the credit amount was increased to 30% from 26% in 2021. The credit can offset the cost of installing electric, water heating, or temperature control systems in homes that use solar, wind, geothermal, biomass, or fuel cell power.


16. Are HSA contributions tax-deductible? What else has changed with HSAs?

Yes! The contributions to an HSA are tax-deductible, and the earnings (if invested) are tax-free, as are withdrawals foreligible medical expenses. You report your contributions on Form 8889 with the total contributions transferred to and reported on your Form 1040.

HSA funds, flexible spending arrangements (FSAs), and health reimbursement arrangements (HRAs) can purchase over-the-counter medicines without a doctor's prescription.


17. Are charitable contributions eligible for a tax deduction in 2022?

Any contribution—of cash or non-cash assets—received by December 31, 2022, is eligible for a tax deduction. Generally, you may deduct up to 50% of your AGI. Keep in mind that charitable contributions are only deductible if you are itemizing.


18. Are there any tax deductions for teachers in 2022?

Yes! Teachers and other educators who pay out of pocket for books, supplies, and other materials used in the classroom can deduct up to $300 for these expenses.


19. What’s changing this year with platforms like Paypal and Venmo?

It turns out, nothing. The IRS previously announced that payment platforms like Venmo and Paypal would be required to send Form 1099-K to anyone who earned $600 or more on the platform in 2022. On December 23, the IRS reversed course for the 2022 tax year, reverting to the previous requirement that platforms provide 1099-Ks to those who earned at least $20,000 from 200-plus transactions on the platform.

This is not a cancellation of the new requirement, but a delay for the 2022 tax year. Reach out if you have any questions at all about this. 


Just-for-Fun Tax Deductions

20. Can clarinet lessons for my child reduce my taxes?

Why, yes, they can! It’s true. Clarinet lessons for your son or daughter can qualify as a medical expense because they may help correct a misaligned bite. Lessons might also qualify as dependent care expenses if they happen outside the normal school day.


21. Can I deduct the cost of my backyard swimming pool?

If you have a medical condition like arthritis that doctors believe could be helped by regular time in the water, you may be able to write off the cost of putting in a pool.


22. Do summer camp expenses for my child qualify me for the child and dependent care credit?

Yes! If you are single and working or married and both you and your spouse work, the costs of day camp during the summer generally count as expenses toward the child and dependent care credit. 

I hope this guide was helpful — and maybe a tad amusing. Feel free to share it with others, and as you shift into high gear with your 2022 tax return, don’t hesitate to reach out if you have questions, no matter how small. We’re here to make this tax season easy, efficient, and headache-free.

We are accepting new tax clients for 2022.   Schedule a complimentary tax call.   Schedule Online


Published in Tax Tips
Monday, 23 January 2023 18:04

Tax Updates for 2022

As we move towards tax season, I wanted to get a jump on sharing a few IRS tax updates for 2022, so you can plan accordingly.  The theme almost entirely across the board? Brackets, limits, and thresholds are increasing for 2022

As you read over these changes, let me know if you have questions or would like to know if/how they apply to you. I’m here to find ways to help you save and pay no more than you need to this tax year and always. 

  • Tax brackets increase. Here are the adjusted minimum income levels for the top tax brackets for each filing status for 2022:
    • Single: $539,901 (up from $523,601 in 2021)
    • Head of household: $539,901 (up from $523,601 in 2021)
    • Married filing jointly: $647,851 (up from $628,301 in 2021)
    • Married filing separately: $332,926 (up from $314,151 in 2021)
  • Standard deduction rises. All taxpayers are entitled to the standard deduction unless they itemize their deductions. Here are the 2022 standard deductions:
    • Single: $12,950 (up from $12,550 in 2021)
    • Head of household: $19,400 (up from $18,800)
    • Married filing jointly: $25,900 (up from $25,100)
    • Married filing separately: $12,950 (up from $12,550)
  • Retirement contribution limits increase, too. The 2022 contribution limit for elective deferrals to 401(k), 403(b), most 457 plans, and the Thrift Savings Plan (for federal employees and members of the uniformed services) increases to $20,500. The total you and your employer can contribute combined also rises to $61,500 from $58,000. Note that the catch-up contribution for taxpayers aged 50 and older remains at $6,500.
  • Health savings account (HSA) limits go up. For 2022, the amount you can set aside for qualified medical expenses increases to $3,650 for self-only coverage and $7,300 for family coverage.
  • Earned income credit decreases for individuals with no children. The earned income tax credit (EIC) is a refundable tax credit for low- and moderate-income Americans. The credit amount depends on income and the number of children, but workers without children can still qualify. In fact, the largest change for 2022 is a significant decrease in the credit for persons with no children. This is because the American Rescue Plan boosted it from $543 to $1,502 in 2021; however, this increase doesn’t apply in 2022. 
  • The estate tax exemption and gift tax limits will rise. In 2022, the federal estate tax exemption grows to $12.06 million from $11.7 million. The gift tax annual exclusion also increases to $16,000 from $15,000 in 2021.
  • Capital gains tax thresholds increase. Although the capital gains tax rates for long-term investments remain the same for 2022, income thresholds have increased. Learn more about 2022 capital gains tax rates on the IRS’s website
  • New tax credit for the purchase of an electric vehicle (EV). Beginning next year, new EV owners will enjoy a tax credit of up to $7,500. To qualify, the EV must have “final assembly” in North America. The credit also offers a $4,000 credit for people who buy used electric cars.

I hope you found this information helpful. If nothing else, you’re better prepared than most to finish out the year strong from a tax perspective. 

As always, if we can be of assistance to you, please reach out anytime—that’s why we’re here. 


We are accepting new tax clients for 2022.   Schedule a complimentary tax call.   Schedule Online

Published in Tax Tips
Thursday, 31 January 2019 16:32

2019 Tax Organizer - Maximize Your Deductions

Download a Tax Organizer Form-Fill-In PDFs for 2019 tax season

These Tax Organizers are designed to help you gather the tax information needed to prepare your personal income or business tax return for 2018.  A Tax Organizer is a great tool to help you reduce your taxes or increase your tax refund.  


2018 Basic Organizer (4 Pages) –This organizer is suitable for clients that are not itemizing their deductions and DO NOT have rental property or self-employment expenses.

2018 Full Organizer (8 Pages) – This organizer includes the information included in the basic organizer, plus entries for itemized deductions, rental properties, and self-employment expenses.


2018 Basic Organizer (4 Pages) – This organizer is suitable for clients with self-employment income, partnership income, and corporation income.  (Schedule C, 1065 & 1120s)

We can help you file your tax returns.  Schedule Online.

The following are examples of supporting documentation:

  • Forms W-2 for wages, salaries, tips, and gambling winnings.
  • All Forms 1099 for interest, dividends, retirement, miscellaneous income, social security, state or local refunds, etc.
  • Form 1099B Brokerage statements showing investment transactions for stocks, bonds, options, etc.
  • Schedule K-1 from partnerships, S-corporations, estates, and trusts.
  • Statements supporting educational expenses, deductions or distributions, including any Forms 1098-T, 1098-E, or 1099-Q.
  • All Forms 1095-A, 1095-B, and/or 1095-C related to health care coverage for the Premium Tax Credit.
  • Statements supporting deductions for mortgage interest, taxes, and charitable contributions, including any Form 1098-Mort.
  • Copies of closing statements regarding the sale or purchase of real property.
  • Legal papers for adoption, divorce, or separation involving custody of your dependent children.
  • Any tax notices sent to you by the IRS or other taxing authority.
  • A copy of your income tax return from last year, if not prepared by Mendoza, Silva & Company.

Call us today at 301-962-1700.



Published in Tax Preparation

Owing more than $51,000.00 of taxes can stop your travel plans.


Beginning in 2018, The IRS started mailing to Taxpayers owing more than $51,000.00 a notice called "CP508C - Notice of Certification of your Seriously Delinquent federal tax debt to the State Department".

If you owe taxes over $51,000, the IRS may inform the State Department which can then revoke your passport.   And you might not even know until you get to the airport.

"On December 4, 2015, as part of the Fixing America’s Surface Transportation (FAST) Act, Congress enacted Section IRC §7345 of the Internal Revenue Code, which requires the Internal Revenue Service to notify the State Department of taxpayers owing more than $51,000.00 and certifying the Taxpayer as “Seriously Delinquent. The FAST Act generally prohibits the State Department from issuing or renewing a passport to a Taxpayer with seriously delinquent tax debt. (per IRS)"

The IRS has the following power if you don’t act soon;

  • Filed a Notice of Federal Tax Lien,
  • Issued a levy to collect the debt to your employer or from your customers,
  • If you apply for a passport or passport renewal, the State Department will deny your application,
  • If you currently have a valid passport, the State Department may revoke your passport or limit your ability to travel outside the United States.

 It is estimated that about 270,000 Taxpayers are about to receive Notice CP508C in 2019.

Step 1: What to Do? 

  1. Give us a call,
  2. Request the IRS to provide the detail of accounting for the years and the balances under question.   We will call on your behalf and request IRS “Account Transcripts.” 
  3. Evaluate the Account Transcripts for missing payments and locate the canceled check(s) for account adjustments.
  4. Verify if the amount owed is correct.

Step 2:  Propose a Viable Collection Alternative

  1. Stablish Installment agreement (IA).  The installment agreement must be accepted with the IRS prior the passport revocation can be reversed.
  2. Offer in Compromise (OIC).  Same as IA, it must be accepted.
  3. Request for an Innocent Spouse Relief.  While the request is pending, reversal is available.  IRC §6015(e)(1)(B) prohibits enforcement while the application is pending.   If the debt is related to your spouse income or business and you did not participate in the business activity, Innocent Spouse Relief can be a good avenue for passport revocation reversal.  The key is that the request does not need to be accepted by the service.  It only needs to be pending.

Key Facts

passportBefore denying a passport, the State Department will hold the application for 90 days to allow a citizen to:

  1. Resolve any erroneous assessment issues (Incorrect tax debts or identity theft matters)
  2. Make full payment of their debt,
  3. Enter into a satisfactory payment arrangement – IRM

Reversal Certification under IRC §7345(c)

You have established a collection alternative with the IRS and accepted.  The IRS must give notice to the State Department reversing the certification if:

  1. Certification is found to be erroneous,
  2. Debt is legally unenforceable,
  3. Debt is fully satisfied,
  4. Debt is no longer “seriously delinquent” per §7345(b),
    1. Installment Agreement is entered into,
    2. Offer in Compromise is accepted,
    3. Justice Department enters into a settlement agreement,
    4. Innocent Spouse Relief is requested.

Once the (IA) and (OIC) are accepted or Innocent Spouse Relief request is pending, the IRS will mail the “Reversal” notice to taxpayer CP508R and to the State Department.  

If you have questions or concerns about the passport revocation, please call Mendoza, Silva & Company today!

We are here to help. 

Published in Tax Resolution
Thursday, 08 March 2018 19:13

2018 Child & Dependent Tax Credits

Increased to $2,000 in 2018

The child tax credit increases in 2018 to $2,000 (up from $1,000) with up to $1,400 being refundable. The earned income threshold is reduced to $2,500 (down from $3,000 in 2017) allowing more taxpayers to qualify for the credit. A child has to be under the age of 17 and have a valid Social Security number issued before the return due date to qualify for the credit.

In addition, a non-refundable tax credit of $500 is available for each non-child dependent that does not qualify for the child tax credit. The AGI thresholds at which the credit begins to phase out are substantially increased: to $400,000 for married filing jointly and $200,000 for all other taxpayers.



Published in Tax Preparation

You May Be Surprised at the Tax Ramifications

Article Highlights: 

  • Schedule C vs. Schedule E 
  • Rentals of Less Than15 Days 
  • Rentals of 7 Days or Less 
  • Rentals of 8 to 30 Days 
  • An exception to the 30-Day Rule 

If you are among the many taxpayers renting your first or second home using rental agents or online rental services that match property owners with prospective renters, such as Airbnb, VRBO and HomeAway, then you should know the IRS has special rules related to short-term rentals. 

When property is rented for short periods, special (and sometimes complex) taxation rules come into play, which can make the rents excludable from taxation; other situations may force the rental income and expenses to be reported on Schedule C (as opposed to Schedule E).  If you have been renting your home or second home for short periods of time, here is a synopsis of the rules governing short-term rentals so you can prepare yourself for the upcoming tax season. 

  • Rented for Fewer Than 15 Days During the Year: If you rent your property for fewer than 15 days during the tax year, the rental income is not reportable, and the expenses associated with that rental are not deductible. However, interest and property taxes are still deductible as itemized deductions on your Schedule A. 
  • Rented for an Average of 7 Days or Less: Under normal circumstances, rentals are treated as passive activities, which are reported on a Schedule E, and net profit from the rental activity is not subject to self-employment tax. But the special rules treat short-term rentals averaging 7 days or less as a trade or business similar to that of a hotel or motel, with the income and expenses reported on Schedule C, and the profits are subject to both income tax and self-employment tax. 
  • Rented for an Average of 8 to 30 Days: Even rentals for longer than 7 days are treated as a trade or business when substantial personal services are provided to the short-term tenant. Substantial services are those that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service. Substantial services do not include the furnishing of heat and light, the cleaning of public areas, trash collection, and such. 

When extraordinary services are provided, the rental is treated as a trade or business and reported on Schedule C regardless of the average rental period. However, it would be extremely rare for this to apply to short-term rentals of your home or second home. 

  • Exception to the Significant Services Rule – If the personal services provided are similar to those that generally are provided in connection with long-term rentals of high-grade commercial or residential real property (such as the cleaning of public areas and trash collection), and if the rental also includes maid and linen services at a cost of less than 10% of the rental fee, then the personal services are neither significant nor extraordinary for the purposes of the 30-day rule. 

A loss from this type of activity, even when reported on your Schedule C as a trade or business, is still treated as a passive activity loss and can only be deducted against passive income. The $25,000 loss allowance that applies to some Schedule E rentals is not available for rental activities reportable on Schedule C. 

It is important that you keep a record of not only the rental income from each tenant but also the duration of each rental, so the average rental term for the year can be determined. If you have questions about your rental activities, please give this office a call.

Published in Tax Preparation
Monday, 29 January 2018 01:50

Reembolso de impuestos a nuevo residentes

El programa de radio se detalla sobre el reembolso de impuestos del IRS a familias que acaban de recibir su residencia “Green Card”. En lay fiscal existe la oportunidad a nuevos residentes recibir un reembolse de impuestos hasta $13,000 por familia. Para cualificar para esta oportunidad, el contribuyente debe de haber preparado impuestos por tres años antes de recibir la residencia. Durante los tres años del impuestos, el contribuyente por falta de el estatuss de residencia no calificaba para ciertos crédito y beneficios otorgados para residentes of ciudadanos. La ley fiscal le da la oportunidad para retroactivamente pedir los beneficios perdidos durante el periodo de no tener la residencia. Para más información llamamos para una consulta.

  • Clases QuickBooks – Estimados e Invoices
  • Requisitos para calificar para el Reembolso de IRS:
  • Green Card
  • Ingresos menores a U$S 45.000
  • Haber preparado impuestos por tres años
  • Casado o Cabeza de Familia
  • Tener un dependiente (hijos declarados en los impuestos)





Published in Radio Show

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