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Jennifer's Blog

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