Effective 7/1/2022: The mileage rate is now $62.50 cents per mile.

At the end of 2021 many existing tax rules expired, awaiting the normal Congressional extender bills and long drawn out political posturing before retroactive rule changes. This year it does not look like Congress will be able to extend anything in the current political climate, so here is a special list of things that have already expired and that are no longer in effect for 2022.

Selected Expired Individual Tax Items:
• The 1 year only increase in the child credit expired at the end of 2021. This credit reverted back to $2,000 (from $3,000); reduced the age back to under 17 (from under 18); is no longer fully refundable ($1,400 max); and reverts back to lower income phase outs.
• The 1 year only increase in the dependent care credit also expired at the end of 2021. It reverts back to 20% (from 50%); reverts back to a very low AGI phase-out (at $15,000 it begins reducing from 35% to 20%); and lowers qualified expenses back to $3,000 for 1 child ($6,000 for >1) from the one year only amounts of $8,000 and $16,000.
• The $600 non-itemizer charitable deduction amount expired at the end of 2021.
• The 2021 increases to the earned income credit for taxpayers without children and for older and younger Americans reverts back to 2020 rules.
• The 100% of AGI charity deduction for cash contributions reverted back to a 60% limit.
• The credits for nonbusiness energy property (insulation, storm windows and doors, etc.) and alternative fuel refueling (electric car chargers) expired at the end of 2021.
• The deduction for mortgage insurance premiums as mortgage interest expired at the end of 2021.
• Required minimum distributions returned for taxpayers 72 and older after 2018.
• Cafeteria plan deferrals for child care revert back to $5,000 from $10,500.

Selected Expired Business Tax Items:
• Full expensing of R&D costs changes from 2021 to a 5 year amortizing asset deduction in 2022.
• The business interest expense deduction goes from 30% of EBITDA in 2021 to 30% of EBIT in 2022.
• The 1099-K reporting threshold of $20,000 for 2021 has been dropped to $600 for 2022.
• The Employee Retention Credit for all businesses, including startups, expired at the end of 2021, although it may still be claimed on amended 941’s for 2021 and 2020.
• The 3-year recovery period for racehorses two years old or younger also reverted back to 7 years for 2022