2022 Rates and IRS Limits
2022 is here! The IRS has released their 2022 "Dirty Dozen" List. Please go to IRS.gov website for the complete list of taxpayer caution advise. Here is what is new for 2022.
Standard Deductions will be: Single (Under 65) $12,950; (65 or Older) $14,700; Married Filing Joint $25,900; Head of Household (Under 65) $19,400; (65 or Older) $20,800.
Higher Education Maximum Deduction will be up to $2,500 per student depending on adjusted gross income.
Educator Expenses Deduction will allow up to $300 for business expenses paid for books, supplies, computer equipment and other equipment and supplementary materials used in the classroom.
Standard Mileage Rates will be:
| 2022 (Jan-June) | 2022(July-Dec) | |
| Business | 58.5¢ / mi. | 62.5¢ / mi. |
| Relocation | 18¢ / mi. | 22¢ / mi. |
| Medical | 18¢ / mi. | 22¢ / mi. |
| Charitable | 14¢ / mi. | 14¢ / mi. |
Earned Income Credit could be available to a taxpayer having at least one qualifying child and earning less than $57,414.
IRA Contribution Limits (Traditional and Roth) for this year will be $6,000 or, $7,000 if over the age of 50 at the end of 2022.
Possible Penalties For Lack Of Compliance
Almost all payroll duties have a penalty for lack of compliance or failure to file. No one plans to miss a deposit, fail to file a report on time, or not be aware of a new rule or regulation. However, just one error can cost hundreds, if not thousands of dollars.
Some examples are:
- Insufficeint Federal Payroll Tax Deposits = Up to 15% of Amount Underpaid
- Late Filing or Failure to File IRS Form 940 = Up to 100% of Unpaid Liability
- W-2 Issuance and Filing = Up to $100 Per Occurrence
- Employment Tax Record Retention = Up to $100,000
- Insufficient INS I-9 Form Compliance and Retention = Up to $10,000 Per Violation
