CPA for Freelancers

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Notable Tax Updates for Freelancers in 2022

We are living in a world where things seem to be changing every day and it can be easy to be confused as to what you should or shouldn't do. Don't make tax season a headache and know if your deadlines, or income threshold for marginal tax rates has changed.

Tax Due Dates for 2022

  • January 18, 2022 – Deadline for Q4 2021 estimated tax payments.
  • January 31, 2022 – Deadline for clients to send freelancers their W-2 or 1099-NEC/1099-MISC forms.
  • March 15, 2022 – Deadline for partnership tax returns (and LLCs that are taxed as a partnership) as well as S-corporation tax returns.
  • April 18, 2022 – Deadline for 2022 Q1 estimated tax payments. It’s also the deadline for C-corporation, sole proprietor (businesses you report on a schedule C), and individual tax returns. If you file an extension for the deadline, the Individual Tax Return Extension Form is due on April 18, too.
  • June 15, 2022 – Deadline for 2022 Q2 estimated tax payments.
  • September 15, 2022 – Deadline for 2022 Q3 estimated tax payments.
  • October 17, 2022 – Deadline for 2021 individual tax returns that received a filing extension.

Given the rise of the Omicron virus and potential next wave of the Covid pandemic, there could be changes to these due dates as there have been in the past several years if the IRS determines this to be necessary. Stay tuned!

Income Threshold for Marginal Tax Rates

The standard deduction: 

  • For married couples filing jointly for tax year 2022 rises to $25,900 up $800 from the prior year. 
  • For single taxpayers and married individuals filing separately, the standard deduction rises to $12,950 for 2022, up $400, and for heads of households, the standard deduction will be $19,400 for tax year 2022, up $600.

2022 marginal tax rates: 

  • The top tax rate remains 37% for individual single taxpayers with incomes greater than $539,900 ($647,850 for married couples filing jointly).
  • 35%, for incomes over $215,950 ($431,900 for married couples filing jointly);
  • 32% for incomes over $170,050 ($340,100 for married couples filing jointly);
  • 24% for incomes over $89,075 ($178,150 for married couples filing jointly);
  • 22% for incomes over $41,775 ($83,550 for married couples filing jointly);
  • 12% for incomes over $10,275 ($20,550 for married couples filing jointly).
  • The lowest rate is 10% for incomes of single individuals with incomes of $10,275 or less ($20,550 for married couples filing jointly). 
  • For 2022, as in 2021, 2020, 2019 and 2018, there is no limitation on itemized deductions, but you should weigh itemizing against the benefits of taking the standard deduction noted above.
  • The tax year 2022, the maximum Earned Income Tax Credit amount is $6,935 for qualifying taxpayers who have three or more qualifying children, up from $6,728 for tax year 2021.

With the changes made by the IRS to payment app reporting requirements, the continuing crypto currency crackdown, and the above changes to marginal tax rates, and other tax thresholds, 2022 is shaping up to be a year where freelancers need to pay close attention to keeping their reporting up to date and being aware of new tax obligations coming this year. 

Checking in with your tax professional now can help you navigate these changes and make sure you are on track with your current and future freelance business taxes.

Jonathan Medows, CPA

Jonathan Medows is a certified public accountant licensed in New York, New Jersey, Maryland, and Pennsylvania. He is also a recognized expert in taxation for freelancers and the self-employed—often tapped for his expert knowledge and perspective on self-employment taxation by national and regional publications such as The New York PostBusinessWeek, Forbes taxation blog, WebCPA, CPA Practice Advisor, and others. You can read some of Jonathan’s press coverage here.

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