FORM 1040 UPDATES 2022

The IRS makes drastic to subtle changes to the 1040, every year. There are quite a few changes that were made to the 2022 Form 1040. Enlisted below are the changes that were currently made –

Categorization of Line 1 Income

The income that was previously reported as just one amount has been sub-categorized into 9

  • Line 1a – W-2 Box 1 amount
  • Line 1b – Household Employee Wages
  • Line 1c – Tip Income
  • Line 1d – Medicaid waiver payment not reported on W-2
  • Line 1e – Taxable dependent care benefits (Form 2441)
  • Line 1f – Employer provided adoption benefits (Form 8839)
  • Line 1g – Wages from Form 8919
  • Line 1h – Other earned income
  • Line 1i – Nontaxable combat pay election

Social Security

Checkbox for ‘Lump sum Election’ for taxpayers who choose to use the lump sum method for their social security benefits.

Child Tax Credit

Line 19 was previously “Nonrefundable child tax credit or credit for other dependents from Schedule 8812”. It has been changed to “Child tax credit or credit for other dependents from Schedule 8812”.

Earned Income Credit

The Earned Income Tax Credit has returned to the pre-COVID amounts. Lines 27a, 27b and 27c have been removed. Taxpayers are no longer permitted to use the prior year income to figure EIC. 

Additional Child Tax Credit

Line 28 has been changed from “Refundable child tax credit or additional child tax credit from Schedule 8812” to “Additional child tax credit from Schedule 8812”.

Recovery Rebate Credit / Stimulus Payment

The Recovery Rebate Credit is no longer valid for tax year 2022 and has been removed

Certain Deductions and Credits Removed

  • Charitable deduction for non-itemizers
  • Mortgage insurance premium deduction
  • Credit for sick and family leave for self-employed individuals
  • Recovery rebate credit
  • Health coverage tax credit
  • Expanded child tax credit
  • Expanded dependent care credit
  • Expanded earned income tax credit for taxpayers without a qualifying child

Changes in Standard Deduction

For Taxpayer aged 65 or older or blind-

Form 1099-K

Change in the threshold for filing Form 1099-K by third-party payment processors. For 2021 taxes, the threshold was $20,000 or 200 transactions, while for 2022 taxes, the threshold was changes to $600. 

Mileage rates

Mileage rates have been split between the periods – Jan to June and July through December

Restaurant business meals deduction

2022 would be the last year to claim the 100% business meals deduction for restaurant-provided meals.

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