Tax Corner

There’s some recent changes to tax laws and 2022 was no exception.  Below is a short list of a few of these changes for 2022. Retirement plan contribution limits 401(k) – increased to $20,500 + $6,500 for age 50+ Simple IRA – increased to $14,000 + $3,000 for age 50+ IRA/Roth IRA – remains at $6,000+ $1,000 for age 50+ Annual gift exclusion Increased to $16,000 per recipient Lifetime estate/gift exemption Federal – increased to $12.06 million Minnesota – remains at $3 million Wisconsin – N/A RMD age Starts at 72, but with lower distribution percentages Capital gains rates Remains at 0%/15%/20% depending on taxable income Child tax credit $2,000 per child, down from $3,000/$3,600 per child in 2021 Tax filing deadline will be 4/18/2022 In the latter part of 2021, significant changes were proposed for income taxes, particularly around the lifetime estate/gift exemption, income tax rates and brackets, and capital gain tax rates and brackets. While we expect Biden to still try and push through a version of the prior tax agenda, doing so will remain difficult due to a slim Democratic majority in the House of Representatives and a slim Republican majority in the Senate. We will keep you informed with information as the legislative situation changes.