CNBC: “‘A lot of people are going to see less money in their pocket.’ Here are must-know tax changes for 2022”

CNBC, December 2, 2022 — In today’s article by Kate Dore, CFP®, we learn, “After another year of tax law changes, there are significant updates for the 2022 season, with the possibility of a smaller refund or bigger bill for many taxpayers, experts say. With many Americans facing reduced tax breaks, it’s important to be proactive with year-end planning before the calendar winds down.”

Here are some of the biggest changes taxpayers need to know, according to financial experts including Marguerita Cheng, CFP® Pro, who says: “You won’t get a charitable tax break in 2022 if you don’t itemize deductions on your return.”

Here’s why: Congress gave charities a boost in 2021 by allowing single donors to claim a deduction for up to $300 for cash donations or $600 for married couples filing together, regardless of whether you itemize, said Cheng, who also is part of CNBC’s Financial Advisor Council.

However, the tax break wasn’t extended for 2022. Now, you’ll only benefit if your itemized deductions, including the tax break for charitable gifts, exceeds the standard deduction, which is less common. In 2019, almost 90% of taxpayers used the standard deduction, according to the IRS.

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