Looking ahead: Tax Law Changes for Your 2022 Tax Returns (due in 2023):
The tax rate for C-Corporations is planned to increase from 21% to 28% in 2022. New legislation introduced by the Inflation Reduction Act of 2022 proposes to also impose a 15% alternative minimum tax on C-Corporations with net incomes greater than $1B to make sure that they are paying at least a minimum in taxes.
New Tax Law Changes for Your 2021 Tax Returns:
- Your monthly Child Tax Credit ("CTC") payments may increase or decrease your refund. These monthly payments are advance payments of the CTC you are assumed to be receiving on your 2021 tax return. If you received monthly child tax credit payments, you must report the amount on your 2021 tax return so any additional credit you may be due can be calculated (or if you received more than you were owed, how much you will owe back to the IRS). You should receive Letter 6419, which will state the total amount of child tax credit payments you received.
- 2021 Recovery Rebate Tax Credit for Third Stimulus Payments. Just like with the first two stimulus credits for 2020, this 3rd Stimulus Credit payment was sent to most taxpayers as an advance on the credit for their 2021 tax returns. The IRS will send Letter 6475 in January 2022 to those who have received this advance credit. This will need to be reported on your 2021 tax return in order to calculate any remaining credits due to you. If you do not receive Letter 6475, you can view your stimulus payment amount by logging into your IRS.gov online account