Hexagon May/June 2022

By: Ellen R. Swing, Director of Finance & Accounting, COFACC

 

The Internal Revenue Service announced the most recent annual inflation adjustments that will affect the tax bill of taxpayers for the year 2022 which will be filed in 2023. This year’s adjustments are more significant than in recent years as the US inflation rate hits a 39-year high of 7% in December 2021. The IRS has adjusted tax rate schedules, standard deduction levels, credits, tax advantage limits, and other tax items that are factored into a 2022 tax return. Following are the adjustments worth noting in strategizing your tax liability for 2022:

 

1.    Tax Brackets Increase

Your tax bracket prompts your tax bill calculation. To keep pace with inflation, the IRS makes changes to these tax brackets to fight inflation and to help taxpayers in the lower brackets pay less. It is worth mentioning that the top tax rate remains 37% for individual single taxpayers with incomes greater than $539,900 ($647,850 for married couples filing jointly).

The table below shows the adjusted federal tax brackets for 2022:

Tax Rate	For Single Filers	For Married Individuals Filing Joint Returns	For Heads of Households
10%	$0 to $10,275	$0 to $20,550	$0 to $14,650
12%	$10,275 to $41,775	$20,550 to $83,550	$14,650 to $55,900
22%	$41,775 to $89,075	$83,550 to $178,150	$55,900 to $89,050
24%	$89,075 to $170,050	$178,150 to $340,100	$89,050 to $170,050
32%	$170,050 to $215,950	$340,100 to $431,900	$170,050 to $215,950
35%	$215,950 to $539,900	$431,900 to $647,850	$215,950 to $539,900
37%	$539,900 or more	$647,850 or more	$539,900 or more

 

 

2. Standard Deduction Increases

 

The standard deduction increased by $400 for single filers and by $800 for joint filers.  Most individual taxpayers in the lower brackets choose the standard over itemized deduction.  Table below reflects these changes.

Filing Status	Deduction Amount
Single	$12,950
Married Filing Jointly	$25,900
Head of Household	$19,400

 

3. Alternative Minimum Tax (AMT) Increases

The alternative minimum tax, or AMT, is a second method of calculating federal income tax liability by letting the taxpayer itemize deductions instead of taking the standard deduction. This method is an option taken by most high-income individuals with significant aggregate itemized deductions to allow for lower tax liability. The single taxpayer exemption for tax year 2022 increased to $75,900. That maximum exemption begins to phase out when the income reaches $539,900. The exemption for married couples filing jointly is $118,100 and begins to phase out at $1,079,800. The 28% AMT rate applies to excess AMTI of $206,100 for all taxpayers ($103,050 for married couples filing separate returns).

 

Filing Status	Exemption Amount
Unmarried Individuals	$75,900
Married Filing Jointly	$118,100

 

4.  Capital Gains Tax Increase

Income thresholds on the long-term capital gains have been increased as shown in the table below. Capital gains are profits from the sale of a property or an investment. Tax is levied according to the term of ownership. The longer you hold on to the asset, the lower you will pay tax. They are considered long-term gains if they are profits on the assets that are held for at least a year.  Short-term gains are profits on assets that are held for less than one year and are taxed as ordinary income.

Tax Rate	For Unmarried Individuals, Taxable Income Over	For Married Individuals Filing Joint Returns, Taxable Income Over	For Heads of Households, Taxable Income Over
15%	$41,675	$83,350	$55,800
20%	$459,750	$517,200	$488,500

 

5. Estate Tax Exemption Limits and Gift Tax Limits Increase

Gifting is an effective strategy to reduce the tax liability against the estates of taxpayers with high net worth. As a provision from The Tax Cuts and Jobs Act, the lifetime federal gift and estate tax exemption increased to $12.06 million per individual and $24.12 million for married couples in 2022. The gift tax annual exclusion increases to $16,000 from $15,000 of previous year.  This is the amount one can give to each person before gift taxes are assessed.

 

6. HSA Contribution Limits Increase

 

Health Savings Account (HSA) is a savings account that allows individuals to make pre-tax contributions to spend on qualified medical expenses. This is another tax strategy because the money set aside in this account is not taxed for as long as it is used to pay for medical expenses. Additionally, once a taxpayer turns 65, it can be used for anything, but tax will be assessed on withdrawals that aren’t used to pay for medical expenses.  This has become a viable option for retirement savings for many because of tax deferment and growth potential. For 2022, the maximum HSA contribution limits increased to $3,650 for an individual and $7,300 for family coverage.

7. Income Limits for Contributions to a Roth IRA Increase

 

A Roth IRA or individual retirement account (IRA) under United States law allows after-tax contributions that are generally not taxed upon distribution, provided certain conditions are met. Individuals take advantage of the after-tax benefits which are tax deferment and tax-free savings growth potential. One can withdraw contributions at any time and any potential earnings can be withdrawn tax-free in retirement. However, not everyone can contribute to a Roth IRA because of IRS income limits. For individuals who don’t qualify because of income exceeding the threshold, a traditional IRA or other retirement savings account is available. Table reflects the income limit increases Roth IRA contributions:

Married Filing Jointly (MAGI)	Married Filing Separately (MAGI)	Maximum Contribution for individuals under age 50	Maximum Contribution for individuals age 50 and older
under $204,000	$0	$6,000	$7,000
$205,000	$1,000	$5,400	$6,300
$206,000	$2,000	$4,800	$5,600
$207,000	$3,000	$4,200	$4,900
$208,000	$4,000	$3,600	$4,200
$209,000	$5,000	$3,000	$3,500
$210,000	$6,000	$2,400	$2,800
$211,000	$7,000	$1,800	$2,100
$212,000	$8,000	$1,200	$1,400
$213,000	$9,000	$600	$700
$214,000 & over	$10,000 & over	$0	$0

 

Adjustments are made by the IRS on different tax items every year. It is advised that one keeps a sharp eye on the changing tax laws as they can affect different taxpayers in different ways. The goal is to minimize tax liability and set aside money for savings or investment.

SUMMER HEAT CAN’T STOP COFACC SURGING FORWARD!

By: Jane Rolen, Editor-in-Chief, COFACC

 

May and June promised to be busy months for COFACC.  And the promise was delivered! Our Chamber Members engaged in executing regular monthly activities and engaged in other special events! So inspiring to see the teamwork, collaboration, and not only volunteerism within each Chamber, but also between Chambers! Most of all, it is gratifying to see our Chamber members succeed and excel. With these engagements and collaborations, we see friendships formed, member Chambers blossoming, and skills developed. We have a very impressive list of impactful trainings! Indeed, there are many reasons to be grateful to COFACC!

I would be remiss if I didn’t mention that May was the Asian American Native Hawaiian and Pacific Islander (AANHPIHM) Heritage Month. We set this time aside to recognize the rich achievements and accomplishments of AA and NHPIs in America’s history and culture. It used to be called Asian Pacific Islander (API) Heritage Month. By virtue of the Executive Order (EO) 14031, Advancing Equity, Justice and Opportunity for Asian Americans, Native Hawaiians and Pacific Islanders, dated 5/28/2021, the name and scope was expanded to re-establish and reinvigorate the White House Initiative to include Native Hawaiians for the first time. This EO was built on the policies outlined in EO 13985, signed by President Joe Biden on January 20, 2021. Happy AANHPI Month Everyone!

I also want to share this “Pinoy Pride” story! A US Navy battleship is named after a Filipino!!! On May 19, 2022, “The Secretary of Navy named Future Arleigh Burke-class Destroyer, Telesforo Trinidad! Telesforo Trinidad was the only Filipino in the US Navy to be awarded the Medal of Honor for his bravery in 1915 aboard USS San Diego, where he risked his own life to save two of his shipmates! This has been a two-year campaign by the USTTC (United States Telesforo Trinidad Campaign) Team. Congratulations to the USTTC Team!

In May, COFACC welcomed Executive Board members from our newest Chamber Members: FACC Tri-county – Nick Munoz;  FACC Hollywood – Katherine Bercasio; PCC Southern NV – Kate Toress Recto,  Ron Sumbang,  Maricres Crissler;  and PCC Michigan – Betsy Henry, Ryan Rosario and Gerardo Carbonell .

June, of course was the “Kalayaan Month!” – I made the title up.  It is because all our Chambers conducted a program/events relating to the Philippine Independence Day, June 12, 1898, when we acquired our Independence from Spain. All month long in June, each Chamber and conducted either a business related meet and greet, a seminar, a face to face mixer, with the Philippine Independence Day as the theme for the whole month.  We stayed the course in following our Vision, Mission and Values. But it was also natural for each and every Chamber to celebrate our Kalayaan Day!

In June, COFACC welcomed new Executive Board members from –    FACC Texas Houston  – Atty. Aileen Ligot Dizon and FAMO – Estela Fullerton and Shirley Byrne. COFACC is growing fast! And on Friday, June 24, 2022, COFACC Chambers participated in the JES Leadership Training, “Strengthen Your Ambassador Team and Maximize its Impact,” by Shari Pash.  The session was insightful, informative and inspiring.

Our Training Department has lined up the succeeding Trainings for the next two months: On July 22, 2022, ACCE Faculty Trainor Kyle Sexton will discuss – “Turning Social Media Into Business Media,” and on Aug. 19, 2022,  ACCE Faculty Trainor Cathi Hight will discuss – “Why You Need to Shrink to Grow Your Chamber (A Purposeful Abandonment).”

I hope everyone takes advantage of these valuable upcoming Leadership Trainings provided by COFACC.  Please Watch out for announcements of details for these Leadership and Business trainings!

On a final note, upcoming huge and meaningful activities that will be impactful for all our Chamber members are in the works!  Let’s KEEP MOVING COFACCI! Many of your Executive Board members are hard at work behind the scenes for many exciting programs!  Your enthusiasm and excitement are both inspiring and energizing!

Have a good summer, stay cool, and stay healthy!

-END-

By: Sweeney Mae Montinola, FACC SLAA

 

The FACC-SLAA (Filipino American Chamber of Commerce in the South Bay and Los Angeles Area) is excited to bring one of their most successful fundraisers back. THE CASINO ROYALE will be held on Saturday, July 23rd at 6:00 PM at The Centre located at 5000 Clark Avenue, Lakewood, CA.

After two years of hiatus, the FACCSLAA Board of Directors are excited to finally get back to what they do best – creating a fun environment for career professionals and business owners to network and celebrate their achievements! Anticipating over 300 guests, the Casino Royale is one of the best events for brand activations and sponsorships.

 

Tickets are available for purchase: VIP: $250 GALA | DINNER TICKET: $175 | PLAY ONLY: $50

VIP ticket includes served (surf & turf) dinner, open bar, and casino chips valued at $500 PLUS two grand prize game cards.

Gala Dinner Ticket includes served (surf & turf) dinner, open bar, casino chips valued at $250, and one grand prize game card.

Play Only Admission open bar, casino chips valued at $250, and one grand prize game card.

Early bird tickets are available with a $15 discount through the end of May. Click here for tickets.

For more information about sponsorships, visit: https://adobe.ly/3L3AB2M

Proceeds will benefit FACCSLAA business grants and scholarship programs.

By Dr. Fatima Bustos-Choy, Director for Training and Development

 

Who are we? Where have we been? Where are we going?

The first months of 2022, JES Leadership programs consisted of: The ABC’s of Highly Successful Chambers, Situational Leadership, Five Keys to Membership Success, and Having the Right Mindset for Membership. These sessions were led by guest speakers Dave Kilby and Diana Williams and from the COFACC Team Ellen Samson, Ellen Bolus-Edmonds, and myself. The sessions focused on acquiring and developing the right mindset and skills set for Chambers to succeed over the long haul in this uncertain and unprecedent landscape. By and large, participation has been positive, though it would have been more desirable to see more proactive registrations rather than some Chambers signing up on the day of the training.

As we fast approach the second half of 2022, it is timely to reflect who we are as leaders of our Chambers, our members, and our communities. It is important for us to honestly evaluate what we have accomplished in the first part of the year, what we did not accomplish that we wish we could have, and what we envision to achieve in the next half of the year. More importantly and profoundly, we need to ask ourselves, who do we want to become? For the mind is the predictor of the future. What we think, we become.

For the remainder of 2022, JES Leadership Series will provide principles and practices for creating the desired Chamber, Chamber Leaders and Team members, Membership, Programs and Events, and financial sustainability. For some Chambers, they have much in place they can leverage from. For others, more work needs to be done. Nonetheless, we are all in this together. As a coalition, we can learn from each other, support one another, and grow together. Exciting and inspiring!

By: Edward Lago, President PACC Arizona

 

PHOENIX, AZ – On June 10, 2022, the Philippine American Chamber of Commerce of Arizona hosted a gala night for the induction of its new set of officers and  members for the term 2022 at the Hilton Phoenix Airport Hotel. It was a well-attended event with prominent community and business leaders gracing the night.  This was the first time that the organization held a public gathering of this size, and it mobilized supporters and key players of the local business community whose immediate main goal is to continue the work and vision of a healthy local economy post pandemic.  The chamber also held a successful fundraising through sponsorships and silent auction that will benefit the Filipino festival, scholarship program, and other future projects.

Chandler City Mayor Kevin Hartke was invited to be the keynote speaker and inducting officer. He delivered a speech that gave testament to how his office immediately took crucial steps and balanced action to protect the health of the community in its initial response to the onset of COVID 19 pandemic.  His office took swift action to reopen the city facilities and made adaptations for  safe economic rebound. The City of Chandler is the most diverse city in Arizona with the greatest percentage of Asian population, and Mayor Hartke has expressed his dedication to protect and support the Asian community.

Newly inducted Chamber President Edward Lago also gave an inspirational speech that was in line with Mayor Hartke’s theme of rebuilding the economy. He spoke of how PACCA’s leadership team under his term stood resilient as the chamber provided much needed assistance and support to its members and the local business community at large in the height of the pandemic.  He gave emphasis on the importance of the chamber’s role in the community, noting, “We are a community partner and voice for the small minority businesses”.

The new set of officers consists of the following for the term 2022: Edward Lago (President); Jason Dragon (Vice President); Judith Austria Bandin (Secretary); Jocylyn Silvosa Kennedy (Treasurer); Priscilla Chesler (Auditor); Vee De Vera (PRO); Sharon Baysan (Membership Chair); MJ Barjose, Ron Smith, Ethel Luzario, Leonardo Aromin, Scott Ballor (Board of Directors).  Special awards were given to outstanding members of the chamber in recognition of their dedication, and invaluable support: Debe Dahmani, Jocylyn Silvosa Kennedy, Priscilla Chesler, Leonardo Aromin, Ron Smith, Ethel Luzario-Smith, Scott Ballor, Jason Dragon, Gemenie Dragon, MJ Barjose, Sharon Baysan, Abby Barjose (Awardees). Flaming Pig and Filipino American Journal were also recognized for their contributions to the community and the organization. Edward Lago was presented a plaque of appreciation by the chamber’s past presidents Leonardo Aromin and Ethel Luzario-Smith for his leadership and dedication. Beautiful photography was captured by Edwin Padilla Photography. The event was lively hosted by Beverly Merkley.

Philippine American Chamber of Commerce of Arizona (PACCA)