Page 16 - Supplement to 2022 Income Tax

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

Disaster distributions (pages 213, 265-266). When Self-employed defined contribution example (pages
this Supplement was prepared, Congress had not 726-727). In the second paragraph of the “Maya”
extended the favorable rules for reporting qualified Example on page 726, the second sentence should
disaster distributions to retirement plan distributions refer to Step 7 of Worksheet 41-1 (not Step 8). In
received by individuals affected by a major federal Step 2 of Worksheet 41-1 on page 727, the reference
disaster beginning after December 27, 2020. to the deduction for self-employment tax should be to
Line 15 of Schedule 1 (not Line 13).
Using the MAGI Worksheet for 2021 Roth IRA
contributions (page 257). In Line 4 of Worksheet Bonus depreciation (pages 751–752). For 2022, the
8-3, there should be only three entry spaces for bonus depreciation rate remains 100%. The rate is
“Deductions”: for traditional IRA contributions, scheduled to fall to 80% in 2023, 60% in 2024, 40%
student loan interest, and self-employed foreign in 2025, and 20% in in 2026.
housing expenses. Disregard the extra entry line.
Recapture of auto depreciation (page 766). In the

Exclusion for student loan cancellations (page 329). The next-to-last paragraph of the Example on page 766, the
heading of the Law Alert on page 329 should refer to first sentence should state the depreciation deduction
student loan cancellations in 2021-2025. for 2021 is $750 (not $710).

Qualified disaster losses (pages 352, 431, 433, Paying deferred portion of 2020 self-employment tax
441). When this Supplement was prepared, Congress (page 784). The second sentence in 45.7 should state
had not extended the special rules for claiming that the repayment that was due by the end of 2021
qualified disaster losses to losses of taxpayers affected for 50% of the deferred 2020 self-employment tax
by major disasters beginning in 2021. was “in addition to” the self-employment tax on 2021
At the end of the first paragraph on page 431, the earnings. The repayment was separately payable to the
reference should be to 13.2 (not 13.1). IRS and not “added to” the self-employment tax due
on Schedule SE for 2021. The IRS made it clear that
Earned income credit for childless individuals (page “end of 2021” means January 3, 2022.
525). In the last bullet on page 525, the Law Alert
referenced in the last sentence is on page 524. IRS interest rate for first quarter of 2022 (pages 794,
798). For January-March 2022, the IRS interest rate
Medicare Part B and D premiums for 2022 (page for individual taxpayer refunds and underpayments is
641). See pages 5–6 of this Supplement for the 3%, the same as it has been since July 1, 2020. The
2022 Medicare Part B premiums (including the Part 3% rate applicable in March 2022 also applies for
B surcharges) and the Part D premium surcharges, purposes of figuring any estimated tax penalty due for
which generally are based on your MAGI for 2020. the first 15 days of April.

Earnings that increase taxable Social Security (page Offer in compromise (page 809). The last sentence
644). In 34.6, Example 2, the page reference to beginning on page 809 should state that the application
Worksheet 34-2 should be page 640. fee for an OIC is $205 (not $186).

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