News
Key changes for the 2022 tax year
Feb 2 2023US Income Tax declarations
1. Foreign earned income exclusion
U.S. taxpayers working abroad have a larger foreign earned income exclusion in 2022. It increased from $108,700 in 2021 to $112,000 for 2022 and $120,000 for 2023.
2. Child and Dependent Care Credit
For 2022, the credit for child and dependent care expenses is non-refundable and you may claim the credit on qualifying employment-related expenses of up to $3,000 for one child under 13 and up to $6,000 for two or more children under 13. The maximum credit is 35% of your employment-related expenses.
3. Recovery Rebate Credit
There were no additional stimulus checks for 2022, meaning the Recovery Rebate Credit will no longer be available this tax year.
4. Standard deductions are larger
For 2022 the standard deduction is $25,900 for joint filers, $19,400 for heads of household, and $12,950 for single filers and those married filing separately.
5. Income tax brackets shift
Tax brackets have gone up for 2022, but the tax rates stay the same.
6. The child tax credit is smaller
The 2022 child tax credit amount will drop to a maximum of $2,000 per child under age 17 (it was $3,000 for children 6 to 17 years of age and $3,600 for children 5 years old and younger for the 2021 tax year).
7. No more $300 charitable deduction
During the pandemic, the IRS allowed taxpayers to reduce their gross income by up to $300 (or $600 if married and filing jointly) if they donated in cash to tax-qualified charities. That above-the-line deduction is no longer available. Individuals who want to write off their charitable donations must itemize their deductions.
French Social Security Contributions
PUMa – CSM (Contribution Subsidiaire Maladie) :
In 2017 the French social security administration adopted new regulations as outlined in article L380-2 of the French social security code. The law was retroactive to 2016.
Please refer to the following article under the AARO website for more detailed information: Insurance (aaro.org)
For the 2021 contributions payable in 2022 certain modifications were introduced.
The following French income tax residents would be subject to the CSM
As outlined by the AARO article:
CSS Art. L. 380-2 says that people who receive a pension are exonerated from the CSM and, so far, that seems to be respected. To our knowledge, the exoneration has been applied not only to French pensions, but to US Social Security and other pensions as well. We cannot now confirm this as an absolute or assert that the applicable law, regulations or interpretation will not change.
However, the PUMa site clearly states that those who receive French, EU or Swiss pension or other retirement income are exempt from the CSM.
For those who are in receipt of foreign (ie US) pension or social security income, the exemption would only apply if the resident is not affiliated with the French social security system and is thus associated with a foreign health care system.
1. Foreign earned income exclusion
U.S. taxpayers working abroad have a larger foreign earned income exclusion in 2022. It increased from $108,700 in 2021 to $112,000 for 2022 and $120,000 for 2023.
2. Child and Dependent Care Credit
For 2022, the credit for child and dependent care expenses is non-refundable and you may claim the credit on qualifying employment-related expenses of up to $3,000 for one child under 13 and up to $6,000 for two or more children under 13. The maximum credit is 35% of your employment-related expenses.
3. Recovery Rebate Credit
There were no additional stimulus checks for 2022, meaning the Recovery Rebate Credit will no longer be available this tax year.
4. Standard deductions are larger
For 2022 the standard deduction is $25,900 for joint filers, $19,400 for heads of household, and $12,950 for single filers and those married filing separately.
5. Income tax brackets shift
Tax brackets have gone up for 2022, but the tax rates stay the same.
6. The child tax credit is smaller
The 2022 child tax credit amount will drop to a maximum of $2,000 per child under age 17 (it was $3,000 for children 6 to 17 years of age and $3,600 for children 5 years old and younger for the 2021 tax year).
7. No more $300 charitable deduction
During the pandemic, the IRS allowed taxpayers to reduce their gross income by up to $300 (or $600 if married and filing jointly) if they donated in cash to tax-qualified charities. That above-the-line deduction is no longer available. Individuals who want to write off their charitable donations must itemize their deductions.
French Social Security Contributions
PUMa – CSM (Contribution Subsidiaire Maladie) :
In 2017 the French social security administration adopted new regulations as outlined in article L380-2 of the French social security code. The law was retroactive to 2016.
Please refer to the following article under the AARO website for more detailed information: Insurance (aaro.org)
For the 2021 contributions payable in 2022 certain modifications were introduced.
The following French income tax residents would be subject to the CSM
- Those who have self-employment (SE) professional activity in France, have regular and stable residence in France and benefit from the state health care system
- Those who have no professional activity or whose total income from their SE professional activity remains below 8 227€ for 2021.
- Those who meet the above criteria and have investment income in excess of 20 568€ for 2021
As outlined by the AARO article:
CSS Art. L. 380-2 says that people who receive a pension are exonerated from the CSM and, so far, that seems to be respected. To our knowledge, the exoneration has been applied not only to French pensions, but to US Social Security and other pensions as well. We cannot now confirm this as an absolute or assert that the applicable law, regulations or interpretation will not change.
However, the PUMa site clearly states that those who receive French, EU or Swiss pension or other retirement income are exempt from the CSM.
For those who are in receipt of foreign (ie US) pension or social security income, the exemption would only apply if the resident is not affiliated with the French social security system and is thus associated with a foreign health care system.
