Question

What are the most critical changes in the tax law for retirees for 2022

Are there specific changes that affect retirees this year?

What are the deduction amounts for Standard vs. Itemized deductions this year?

There are a few changes for 2022 that could affect retirees. Listed below are a few changes you may want to watch out for:

Extra Standard Deduction for Seniors over 65 - A single 65-year-old taxpayer will get a $14,700 standard deduction for 2022.
Credit for the Elderly or Disabled
2022 Changes to retirements plans - phase-out ranges for Traditional IRA income, Roth IRA contributions, and Saver's Credit Income have changed for 2022
Inflation Reduction Act of 2022
Premium Tax Credit
Charitable Contributions - During COVID, taxpayers could take up to $600 charitable donations on their tax return if they claimed a standard deduction. For 2022, those who claim the standard deduction can not claim charitable contributions.

The standard deductions for 2022 are as follows:

You can itemize for 2022 if your deductible expenses on Schedule A exceed the 2022 standard deduction. A list of Schedule A expenses would be:

Unreimbursed Medical and Dental Expenses - you can only deduct the medical amount that exceeds 7.5% of your 2022 adjusted gross income
Long-term Care Insurance Premiums - deductible to the extent that the premiums exceed 10% of your adjusted gross income
Taxes Paid - deductions for state and local sales tax and property taxes but cannot exceed $10,000
Interest You Paid - Home mortgage interest reported on Form 1098
Charitable Contributions
Casualty and Theft Loss
Job Expenses and Other Miscellaneous Deductions - limited to 2% of your adjusted gross income

For more information on standard and itemized deductions, see the link below:

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