Here are the tax items that expired as of 2021 and unless Congress agrees to extend them, will not be available for 2022 tax returns
Selected Expired Individual Tax Items
- The 1 year only increase in the child credit expired at the end of 2021. This credit reverted back to $2,000 (from $3,000); reduced the age back to under 17 (from under 18); is no longer fully refundable ($1,400 max); and reverts back to lower income phaseouts.
- The 1 year only increase in the dependent care credit also expired at the end of 2021. It reverts back to 20% (from 50%); reverts back to a very low AGI phaseout (at $15,000 it begins reducing from 35% to 20%); and lowers qualified expenses back to $3,000 for 1 child ($6,000 for >1) from the one year only amounts of $8,000 and $16,000.
- The $600 non-itemizer charitable deduction amount expired at the end of 2021.
- The 2021 increases to the earned income credit for taxpayers without children and for older and younger Americans reverts back to 2020 rules.
- The 100% of AGI charity deduction for cash contributions reverted back to a 60% limit.
- The credits for nonbusiness energy property (insulation, storm windows and doors, etc.) and alternative fuel refueling (electric car chargers) expired at the end of 2021.
- The deduction for mortgage insurance premiums as mortgage interest expired at the end of 2021.
- Required minimum distributions returned for taxpayers 72 and over 72 after 2018.
- Cafeteria plan deferrals for childcare revert back to $5,000 from $10,500.
Selected Expired Business Tax Items
- Full expensing of R&D costs changes from 2021 to a 5-year amortizing asset deduction in 2022.
- The business interest expense deduction goes from 30% of EBITDA in 2021 to 30% of EBIT in 2022.
- The 1099-K reporting threshold of $20,000 for 2021 has been dropped to $600 for 2022.
- The Employee Retention Credit for all businesses, including startups, expired at the end of 2021, although it may still be claimed on amended 941’s for 2021 and 2020.
- The 3-year recovery period for racehorses two years old or younger also reverted back to 7 years for 2022