The gold standard resource for professional tax preparers in the US - fully updated for the 2022 tax year
The newly revised J.K. Lasser's Your Income Tax Professional Edition 2023 delivers easy-to-follow, authoritative, and step-by-step instructions to help you guide your clients through the tax filing process. This popular guide offers tax-saving advice on every available credit and deduction, so you can be sure your clients are keeping as much of their money as possible.
You'll discover special features included throughout the guide, including legislative alerts, tax planning tips, and filing reminders. You’ll also find:
- Important information about the latest tax legislation from Congress and how it impacts your clients
- Discussions and guidance relating to practice before the Internal Revenue Service
- A complete set of the most used 2022 tax forms
- Accurate citations of tax law authority
The leading resource in tax preparation guides for Certified Public Accountants, tax preparers, and other financial professionals, J.K. Lasser's Your Income Tax Professional Edition 2023 is a detailed, one-stop blueprint for providing unmatched service to your taxpayer clients.
Table of Contents
What's New for 2022 xxvii
Tax News for 2022 xxvii
Key Tax Numbers for 2022 xxx
Tax-Saving Opportunities for 2022 and Beyond xxxii
Pending Tax Rule Changes xxxiii
Expiring Provisions xxxiv
Filing Basics 1
Do You Have to File a 2022 Tax Return? 2
Filing Tests for Dependents: 2022 Returns 3
Where to File Your 2022 Form 1040 or 1040-SR 5
Filing Deadlines (on or before) 6
What Forms Do You Need to File? 8
Filing Status 9
1.1 Which Filing Status Should You Use? 10
If Your Spouse Died in 2021 or 2020 24
1.12 Qualifying as Head of Household 25
Reporting Your Income 35
Wages, Salary, and Other Compensation 37
2.1 Salary and Wage Income 40
Fringe Benefits 56
3.1 Tax-Free Health and Accident Coverage Under Employer Plans 58
Dividend and Interest Income 81
4.1 Reporting Dividends and Mutual Fund Distributions 82
Reporting Property Sales 109
5.1 General Tax Rules for Property Sales 110
Tax-Free Exchanges of Property 158
6.1 Like-Kind Exchanges of Real Property Used for Investment or Business 159
Retirement and Annuity Income 172
7.1 Retirement Distributions on Form 1099-R 174
IRAs 210
8.1 Starting a Traditional IRA 211
Income From Real Estate Rentals and Royalties 264
9.1 Reporting Rental Real Estate Income and Expenses 265
Loss Restrictions: Passive Activities and At-Risk Limits 284
10.1 Rental Activities Generally Treated as Passive 285
Other Income 314
11.1 Prizes and Awards 315
Claiming Deductions 339
Deductions Allowed in Figuring Adjusted Gross Income 341
12.1 Figuring Adjusted Gross Income (AGI) 342
Claiming the Standard Deduction or Itemized Deductions 347
13.1 Does Your Standard Deduction for 2022
Exceed Your Itemized Deductions? 349
13.2 Basic Standard Deduction 349
Charitable Contribution Deductions 354
14.1 Deductible Contributions 355
Itemized Deduction for Interest Expenses 381
15.1 Deduction for Home Mortgage Interest 382
Deductions for Taxes 399
16.1 Overall Limit on Deduction for State and Local Taxes 400
Medical and Dental Expense Deductions 408
17.1 Medical and Dental Expenses Must Exceed AGI Threshold 409
Casualty and Theft Losses and Involuntary Conversions 428
18.1 Casualty or Theft Losses for Personal-Use Property Must Be Due to a Federally Declared Disaster 429
Other Itemized Deductions 453
19.1 Only a Few Expenses Are Allowed as “Other” Itemized Deductions 454
Travel and Meal Expense Deductions 456
20.1 Who May Deduct Travel and Transportation Expenses 457
Personal Tax Computations 477
Dependents 479
21.1 No Exemption Deductions Are Allowed 480
Figuring Your Regular Income Tax Liability 493
22.1 Taxable Income and Regular Income Tax Liability 494
Alternative Minimum Tax (AMT) 498
23.1 Computing Alternative Minimum Tax on Form 6251 500
Computing the "Kiddie Tax" on Your Child's Unearned Income 506
24.1 Filing Your Child's Return 507
Personal Tax Credits Reduce Your Tax Liability 512
25.1 Overview of Personal Tax Credits 513
Tax Withholdings 536
26.1 Withholdings Should Cover Estimated Tax 537
Estimated Tax Payments 544
27.1 Do You Owe an Estimated Tax Penalty for 2022? 545
Additional Medicare Tax and Net Investment Income Tax 550
28.1 Higher-Income Taxpayers May be Subject to Additional Taxes 551
Tax Planning 557
Tax Savings for Residence Sales 559
29.1 Avoiding Tax on Sale of Principal Residence 560
Tax Rules for Investors in Securities 577
30.1 Planning Year-End Securities Transactions 578
Tax Savings for Investors in Real Estate 594
31.1 Real Estate Ventures 595
Tax Rules for Investors in Mutual Funds 608
32.1 Timing of Your Investment Can Affect Your Taxes 609
Educational Tax Benefits 617
33.1 Scholarships and Grants 618
Special Tax Rules for Senior Citizens and the Disabled 635
34.1 Senior Citizens Get Certain Filing Breaks 636
Members of the Armed Forces 650
35.1 Taxable Armed Forces Pay and Benefits 651
How To Treat Foreign Earned Income 658
36.1 Claiming the Foreign Earned Income Exclusion 659
Planning Alimony and Marital Settlements 669
37.1 Rules for Post-2018 Divorce and Separation Agreements 670
Other Taxes 674
38.1 Overview of Household Employment Taxes 675
Gift and Estate Tax Planning Basics 680
39.1 Gifts of Appreciated Property 681
Business Tax Planning 689
Income or Loss From Your Business or Profession 691
40.1 Forms of Doing Business 692
Retirement and Medical Plans for Self-Employed 721
41.1 Overview of Retirement and Medical Plans 722
Claiming Depreciation Deductions 734
42.1 What Property May Be Depreciated? 735
Deducting Car and Truck Expenses 751
43.1 Standard Mileage Rate 752
Sales of Business Property 766
44.1 Depreciation Recaptured as Ordinary Income on Sale of Personal Property 767
Figuring Self-Employment Tax 773
45.1 What Is Self-Employment Income? 774
Filing Your Return and What Happens After You File 783
Filing Your Return 785
46.1 Keeping Tax Records 786
Filing Refund Claims, and Amended Returns 794
47.1 Filing an Amended Return 795
If the IRS Examines Your Return 798
48.1 Odds of Being Audited 799
2022 Tax Forms 811
Form 1040 813
Form 1040-SR 815
Schedule 1 819
Schedule 2 821
Schedule 3 823
Schedule A 825
Schedule B 826
Schedule 8812 827
Form 2441 829
Form 5695 831
2022 Tax Table 833
2022 Tax Computation Worksheet 845
2022 Earned Income Credit (EIC) Table 846
Tax Law Authorities 857
Legislative Authorities 858
Administrative Authorities 859
Judicial Authorities 860
Citations of Authority 863
Key to Citations 864
Filing Basics 865
Practice Before the Irs 977
How Returns Are Examined 979
Audit Rules for Partnerships 986
The Time Limits Within Which the IRS Must Act for Additional Taxes 987
Filing Refund Claims 992
How To Arrange Closing Agreements and Compromises 996
How To Get the IRS' Opinion on a Tax Problem 998
Circular 230: Practice Before the IRS 1004
Tax Return Preparer Penalties 1012
Glossary 1017
Index 1023
