{"id":49660,"date":"2022-06-22T12:27:16","date_gmt":"2022-06-22T19:27:16","guid":{"rendered":"https:\/\/lapost.us\/?p=49660"},"modified":"2022-06-22T12:27:16","modified_gmt":"2022-06-22T19:27:16","slug":"year-round-tax-planning-all-taxpayers-should-understand-eligibility-for-credits-and-deductions","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=49660","title":{"rendered":"Year-round tax planning: All taxpayers should understand eligibility for credits and deductions"},"content":{"rendered":"<p>IRS Tax Tip 2022-95, June 22, 2022<\/p>\n<p>&nbsp;<\/p>\n<p>Tax credits and deductions can help lower the amount of tax owed. All taxpayers should begin <a href=\"https:\/\/www.irs.gov\/individuals\/steps-to-take-now-to-get-a-jump-on-next-years-taxes\">planning now<\/a> to take advantage of the credits and deductions they are eligible for when they file their 2022 federal income tax return next year.<\/p>\n<p><strong>Here are a few facts that can help taxpayers with their year-round tax planning<\/strong>:<\/p>\n<ul>\n<li>Adjusted Gross Income, or AGI, is a taxpayer\u2019s total gross income minus specific deductions that can reduce the taxpayer\u2019s income before calculating tax owed. AGI is the starting point for calculating taxes and determining a taxpayer\u2019s eligibility for certain tax credits and deductions that can help lower their tax bill.<\/li>\n<li><a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-publication-525\">Taxable income<\/a> is a taxpayer\u2019s AGI minus the\u00a0<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-publication-501\">standard deduction<\/a> or <a href=\"https:\/\/www.irs.gov\/taxtopics\/tc501\">itemized deductions<\/a>, whichever is greater.<\/li>\n<li>The standard deduction is a set dollar amount that reduces taxable income. Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions and using the option that lowers their tax the most.<\/li>\n<li>Properly claiming <a href=\"https:\/\/www.irs.gov\/credits-and-deductions\">tax credits<\/a> can reduce taxes owed or boost refunds.<\/li>\n<li>Some tax credits, like the <a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/earned-income-tax-credit-eitc\">earned income tax credit<\/a>, are refundable, which means an eligible taxpayer can get money refunded to them even if they don&#8217;t owe any taxes.<\/li>\n<li>To claim a deduction or credit, taxpayers should keep records that show their eligibility for it.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>IRS Tax Tip 2022-95, June 22,&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-49660","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/49660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49660"}],"version-history":[{"count":1,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/49660\/revisions"}],"predecessor-version":[{"id":49661,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/49660\/revisions\/49661"}],"wp:attachment":[{"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}