As the 2022 filing season is quickly approaching, we would like to remind you of important tax changes that will take effect.
The standard deductions are increasing based on the federal law; beginning January 1, 2022, from:
- From $12,550 to $12,950 for single and married/registered domestic partner filers filing separately;
- From $18,800 to $19,400 for head of household filers;
- From $25,100 to $25,900 for married/registered partners filing jointly and qualifying widow(er) with dependent child(ren) filers;
- An updated worksheet is available for use by dependent filers.
Additional Standard Deduction: If born before January 2, 1958, or blind, an additional standard deduction of $1,400 ($1,750 if single or head of household) is allowed – use Schedule S, Calculation G-1. The Schedule S, Calculation G-1 must be submitted with your return. When married filing separately, you may take an additional standard deduction for your spouse/registered domestic partner only if your spouse/ registered domestic partner had no gross income, is not filing a return, and cannot be claimed as a dependent by another taxpayer.
Earned Income Tax Credit
- Beginning January 1, 2022, and ending December 31, 2022, the DC EITC is increased from 40% to 70% of the federal EIC. Individuals with qualifying children receiving the DC EITC will be paid differently than in previous years. Taxpayers will receive a refund equal to 40 percent of their federal EIC as usual after their return is processed. The additional 30% of the DC EITC, however, will be paid in monthly installments over 11 months pursuant to District law.
- The investment income test is increased from $10,000 to $10,300.
- For EITC Without Qualifying Children the maximum credit amount has decreased from $1502 to $560.
Schedule H - Homeowner and Renter Property Tax Credit
- The real property tax credit is now based on your DC real property tax bill for tax year 2022. Do not include special assessments, interest penalties and services charges.
- Schedule H federal Adjusted Gross Income (AGI) eligibility threshold for under age 70 increases to $57,600.
- Schedule H federal AGI eligibility threshold for age 70 and older increases to $78,600.
- A registered taxpayer using the web portal, MyTax.DC.gov will have the ability to file a Standalone Schedule H.