Sidney Kess
The Inflation Reduction Act of 2022 (P.L. 117-169) was signed into law on Aug. 16, 2022. This massive measure (273 pages in PDF) is intended to tamp down inflation and reduce the deficit. It also contains a number of changes favorable to Medicare beneficiaries, including the ability of the government to obtain rebates from drug price increases in excess of inflation and limit monthly insulin charges to $25 starting in 2023, caps the out-of-pocket limit on what Medicare beneficiaries pay for their prescription drugs starting in 2025, and the ability of Medicare to negotiate directly for prescription drugs starting in 2026. The new law includes many tax provisions affecting individuals and businesses.
Most of the provisions become effective in 2023 or later, but some impact 2022 returns. Certainly, all affect tax planning for everyone.
