What's New for 2022 xxvii

Tax News for 2022 xxvii

Key Tax Numbers for 2022 xxx

Tax-Saving Opportunities for 2022 and Beyond xxxii

Pending Tax Rule Changes xxxiii

Expiring Provisions xxxiv

Filing Basics 1

Do You Have to File a 2022 Tax Return? 2

Filing Tests for Dependents: 2022 Returns 3

Where to File Your 2022 Form 1040 or 1040-SR 5

Filing Deadlines (on or before) 6

What Forms Do You Need to File? 8

Filing Status 9

1.1 Which Filing Status Should You Use? 10

If Your Spouse Died in 2021 or 2020 24

1.12 Qualifying as Head of Household 25

Reporting Your Income 35

Wages, Salary, and Other Compensation 37

2.1 Salary and Wage Income 40

Fringe Benefits 56

3.1 Tax-Free Health and Accident Coverage Under Employer Plans 58

Dividend and Interest Income 81

4.1 Reporting Dividends and Mutual Fund Distributions 82

Reporting Property Sales 109

5.1 General Tax Rules for Property Sales 110

Tax-Free Exchanges of Property 158

6.1 Like-Kind Exchanges of Real Property Used for Investment or Business 159

Retirement and Annuity Income 172

7.1 Retirement Distributions on Form 1099-R 174

IRAs 210

8.1 Starting a Traditional IRA 211

Income From Real Estate Rentals and Royalties 264

9.1 Reporting Rental Real Estate Income and Expenses 265

Loss Restrictions: Passive Activities and At-Risk Limits 284

10.1 Rental Activities Generally Treated as Passive 285

Other Income 314

11.1 Prizes and Awards 315

Claiming Deductions 339

Deductions Allowed in Figuring Adjusted Gross Income 341

12.1 Figuring Adjusted Gross Income (AGI) 342

Claiming the Standard Deduction or Itemized Deductions 347

13.1 Does Your Standard Deduction for 2022

Exceed Your Itemized Deductions? 349

13.2 Basic Standard Deduction 349

Charitable Contribution Deductions 354

14.1 Deductible Contributions 355

Itemized Deduction for Interest Expenses 381

15.1 Deduction for Home Mortgage Interest 382

Deductions for Taxes 399

16.1 Overall Limit on Deduction for State and Local Taxes 400

Medical and Dental Expense Deductions 408

17.1 Medical and Dental Expenses Must Exceed AGI Threshold 409

Casualty and Theft Losses and Involuntary Conversions 428

18.1 Casualty or Theft Losses for Personal-Use Property Must Be Due to a Federally Declared Disaster 429

Other Itemized Deductions 453

19.1 Only a Few Expenses Are Allowed as “Other” Itemized Deductions 454

Travel and Meal Expense Deductions 456

20.1 Who May Deduct Travel and Transportation Expenses 457

Personal Tax Computations 477

Dependents 479

21.1 No Exemption Deductions Are Allowed 480

Figuring Your Regular Income Tax Liability 493

22.1 Taxable Income and Regular Income Tax Liability 494

Alternative Minimum Tax (AMT) 498

23.1 Computing Alternative Minimum Tax on Form 6251 500

Computing the "Kiddie Tax" on Your Child's Unearned Income 506

24.1 Filing Your Child's Return 507

Personal Tax Credits Reduce Your Tax Liability 512

25.1 Overview of Personal Tax Credits 513

Tax Withholdings 536

26.1 Withholdings Should Cover Estimated Tax 537

Estimated Tax Payments 544

27.1 Do You Owe an Estimated Tax Penalty for 2022? 545

Additional Medicare Tax and Net Investment Income Tax 550

28.1 Higher-Income Taxpayers May be Subject to Additional Taxes 551

Tax Planning 557

Tax Savings for Residence Sales 559

29.1 Avoiding Tax on Sale of Principal Residence 560

Tax Rules for Investors in Securities 577

30.1 Planning Year-End Securities Transactions 578

Tax Savings for Investors in Real Estate 594

31.1 Real Estate Ventures 595

Tax Rules for Investors in Mutual Funds 608

32.1 Timing of Your Investment Can Affect Your Taxes 609

Educational Tax Benefits 617

33.1 Scholarships and Grants 618

Special Tax Rules for Senior Citizens and the Disabled 635

34.1 Senior Citizens Get Certain Filing Breaks 636

Members of the Armed Forces 650

35.1 Taxable Armed Forces Pay and Benefits 651

How To Treat Foreign Earned Income 658

36.1 Claiming the Foreign Earned Income Exclusion 659

Planning Alimony and Marital Settlements 669

37.1 Rules for Post-2018 Divorce and Separation Agreements 670

Other Taxes 674

38.1 Overview of Household Employment Taxes 675

Gift and Estate Tax Planning Basics 680

39.1 Gifts of Appreciated Property 681

Business Tax Planning 689

Income or Loss From Your Business or Profession 691

40.1 Forms of Doing Business 692

Retirement and Medical Plans for Self-Employed 721

41.1 Overview of Retirement and Medical Plans 722

Claiming Depreciation Deductions 734

42.1 What Property May Be Depreciated? 735

Deducting Car and Truck Expenses 751

43.1 Standard Mileage Rate 752

Sales of Business Property 766

44.1 Depreciation Recaptured as Ordinary Income on Sale of Personal Property 767

Figuring Self-Employment Tax 773

45.1 What Is Self-Employment Income? 774

Filing Your Return and What Happens After You File 783

Filing Your Return 785

46.1 Keeping Tax Records 786

Filing Refund Claims, and Amended Returns 794

47.1 Filing an Amended Return 795

If the IRS Examines Your Return 798

48.1 Odds of Being Audited 799

2022 Tax Forms 811

Form 1040 813

Form 1040-SR 815

Schedule 1 819

Schedule 2 821

Schedule 3 823

Schedule A 825

Schedule B 826

Schedule 8812 827

Form 2441 829

Form 5695 831

2022 Tax Table 833

2022 Tax Computation Worksheet 845

2022 Earned Income Credit (EIC) Table 846

Tax Law Authorities 857

Legislative Authorities 858

Administrative Authorities 859

Judicial Authorities 860

Citations of Authority 863

Key to Citations 864

Filing Basics 865

Practice Before the Irs 977

How Returns Are Examined 979

Audit Rules for Partnerships 986

The Time Limits Within Which the IRS Must Act for Additional Taxes 987

Filing Refund Claims 992

How To Arrange Closing Agreements and Compromises 996

How To Get the IRS' Opinion on a Tax Problem 998

Circular 230: Practice Before the IRS 1004

Tax Return Preparer Penalties 1012

Glossary 1017

Index 1023

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