TAX LEARNING CENTER

Your Guide To Tax Season and Tax Law Updates.

TAX TIP OF THE DAY| Spending Virtual Currency

Every time virtual currency is “spent” on goods & services, a taxable transaction has occurred that needs to be reported on your tax return! For owners of highly-appreciated cryptocurrency, this could cause an unintended tax bill.

IMPORTANT TAX FILING DATES | Keeping You Prepared and On Time

Tax Filing Deadline | Monday, April 18, 2022

2022 RETIREMENT PLAN LIMITS | As Set by the Internal Revenue Service

For the 2022 tax year, the following are limits set by the IRS for contributions to your retirement plan(s).

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is remaining at $20,500 for the 2022 tax year.

The limit on annual contributions to an IRA remains unchanged for the 2022 tax year at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains at $1,000.

Under the SECURE Act passed in December 2019, significant changes were made to IRA and retirement plan rules.  A few of the most impactful changes include:

  • Repeal of the maximum age for making traditional IRA contributions at age 70½.
  • Increase in the Required Minimum Distribution (RMD) beginning age from age 70½ to age 72 for retirement plans and IRAs.
  • Partial elimination of the popular “stretch IRA” strategy.

The IRS has also recently made updates to the life expectancy tables for calculating required minimum distributions. These changes take effect on January 1, 2022.

(Source: IRS.gov External Website Arrow)

2022 Tax Season Checklist

To prepare for the tax filing season, there are several things you should take into consideration.
Review our 2022 tax filing season checklist to plan accordingly.

WHEN SHOULD I EXPECT MY TAX FORMS? | What You Need to Know

Because Central Trust Company typically awaits receipt of your final tax information, we want you to be aware of when you will receive your yearly tax documents.

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