Local financial professional highlights major changes for tax filing season

MILWAUKEE (CBS 58) -- As tax season approaches, filers should be aware of the changes that could affect their returns.

Financial professional Tony Drake from Drake & Associates joined us on Wednesday, Feb. 22 to offer advice, including suggesting year-round tax planning to decrease a tax burden and improve overall financial health. He believes that incorporating tax planning into an overall financial plan can make room for other goals.

Among the highlights of the changes are that the IRS has released higher standard deductions for 2022 in response to persistent inflation. For married couples filing jointly, the standard deduction increased from $25,900 in 2021 to $27,700 for 2022 tax returns.

Drake says that filers may see a smaller refund this year due to the absence of stimulus payments and the reversion of expanded tax credits and deductions to their pre-COVID amounts. Taxpayers should adjust their withholdings accordingly to get closer to a refund of zero.