【《We Chinese in America》Media Editor Tang Zhao, June 22, 2022】As an ongoing effort to enhance our valuable service to We Chinese in America website readers, We Chinese in America website posts English and Chinese versions of “IRS News Release” ， “IRS Fact Sheets”， and “tax tips” directly received from IRS Media Relations Office in Washington, D.C.. We are pleased to take on this important role partnering with IRS to better inform the public. 

Year-round tax planning: All taxpayers should understand eligibility for credits and deductions

IRS Tax Tip 2022-95, June 22, 2022

Tax credits and deductions can help lower the amount of tax owed. All taxpayers should begin planning now to take advantage of the credits and deductions they are eligible for when they file their 2022 federal income tax return next year.

Here are a few facts that can help taxpayers with their year-round tax planning:

• Adjusted Gross Income, or AGI, is a taxpayer’s total gross income minus specific deductions that can reduce the taxpayer’s income before calculating tax owed. AGI is the starting point for calculating taxes and determining a taxpayer’s eligibility for certain tax credits and deductions that can help lower their tax bill.
• Taxable income is a taxpayer’s AGI minus the standard deduction or itemized deductions, whichever is greater.
• The standard deduction is a set dollar amount that reduces taxable income. Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions and using the option that lowers their tax the most.
• Properly claiming tax credits can reduce taxes owed or boost refunds.
• Some tax credits, like the earned income tax credit, are refundable, which means an eligible taxpayer can get money refunded to them even if they don't owe any taxes.
• To claim a deduction or credit, taxpayers should keep records that show their eligibility for it.

(Source: IRS Tax Tips)

Internal Resource Service

Media Relation Office

Washington, D. C

Media Contact: 202 317 4000

Public Contact: 800 829 1040

www.IRS.GOV/NewsRoom

This website has a free subscription function, please enter your email address and name (any nickname) in the upper right corner of the page. After subscribing, you can receive timely updates of the website. I hope that new and old readers will actively subscribe, so that we have the opportunity to provide you with better services

Please click: Home (wechineseus.com) for more news and content on this website

Follow The Chinese Media's Twitter account: https://twitter.com/wechineseinus

Follow The Chinese Media's Facebook account: https://www.facebook.com/wechineseinamerica/