Page 15 - Supplement to 2022 Income Tax

Updates, Additions, and Corrections to the Text of Your Income Tax 2022

Updates, Additions, and Corrections to the Text of

Your Income Tax 2022

Note to our readers: If you have the Professional Edition of J.K. amortization and fixed annuitization methods under
Lasser’s Your Income Tax 2022, some of the corrections to the text the substantially equal periodic payments penalty
and the updates provided in the following pages may already be
included in your edition. We regret any errors. exception. For payment schedules starting in 2022
or later, the interest rate used can be up to 5%, or,
The page references in the boldface headings below if greater, 120% of the federal mid-term rate for
are to the text of J.K. Lasser’s Your Income Tax 2022. either of the two months immediately preceding the
Page references within the items themselves (after the month distributions begin. Currently, 5% far exceeds
headings) are also to the text of Your Income Tax 2022 120% of the federal mid-term rate. Under prior rules
unless reference is made to this Supplement. (Revenue Ruling 2002-62), the rate could not exceed
120% of the federal mid-term rate. Being able to use

Keep in mind that when this Supplement was prepared, an interest rate up to 5% will allow IRA owners and
Congress had not extended any of the provisions that individuals who are separated from service to receive
expired at the end of 2021 and no new provisions had higher annual payments under the fixed amortization
been enacted (see the list of expired provisions on page method or fixed annuitization method without
11 of this Supplement). penalty before age 591/2.
For future updates, visit jklasser.com In applying the required minimum distribution
(RMD) method or the fixed amortization method
Charitable contributions (page xxviii). The reference to for determining substantially equal periodic
the deduction for cash contributions by nonitemizers payments, the new IRS Single Life Expectancy
should be to 13.2 (not 12.2). Table (page 249), the new IRS Joint Life and Last

Build Back Better Act did not become law (pages Survivor Life Expectancy Table (pages 238–239),
xxxiv–xxxv). The House-passed version of the or a special Uniform Lifetime Table included in the
Build Back Better Act stalled in the Senate. When Appendix to Notice 2022-6, can be used for a series
this Supplement was prepared, it was not clear if of payments starting in 2022 and must be used for
agreement was possible on a different version of a series of payments starting in 2023 or later. The
the legislation. Joint Life and Last Survivor Life Expectancy Table
also can be used with the fixed annuitization method
Where to mail your 2021 return (page 5). For residents if the annuity factor is based on the joint lives of the
of numerous States, the IRS mailing address has account owner and designated benficiary. A person
changed. See page 15 of this Supplement for the who has already begun a series of payments under
updated IRS mailing addresses for 2021 returns. the RMD method using the “old” (pre-2022) life
expectancy table may switch to the new table and the
Unemployment benefits (page 43). In the first
paragraph of 2.5, the reference in the fourth sentence to switch will not be considered a “modification” that
the exclusion that applied only for 2020 unemployment voids the penalty exception and triggers the 10%
benefits should be $10,200 (not $10,500). penalty on all payments received before age 591/2. See
Notice 2022-6 for further details on using the life
Substantially equal periodic payments exception expectancy tables, including the rules for determining
to 10% early distribution penalty (pages the designated beneficiary under the Joint Life and
191,238–239). The IRS in Notice 2022-6 has Last Survivor Life Expectancy Table where there are
revised the interest rate rule used to apply the fixed multiple beneficiaries or the beneficiary is changed.

Supplement to J.K. Lasser’s Your Income Tax 2022 | 13