With the tax deadline rapidly approaching, Lisa Greene-Lewis, CPA and TurboTax tax professional, outlines the largest tax adjustments it’s good to know earlier than submitting.
There are a lot of adjustments for tax 12 months 2022 to pay attention to earlier than submitting your 2023 taxes.
From the American Rescue Plan to the Inflation Reduction Act, Lisa Greene-Lewis, CPA and TurboTax tax professional, discusses every thing it’s good to know.
Read the complete Q&A beneath or watch the video above.
Your taxes, your approach. Do it your self, get professional assist, or hand it off begin to end. Get your taxes accomplished proper and save as much as $20 on TurboTax on-line federal merchandise.
Video Transcript:
The American Rescue Plan
Tracy Byrnes: With tax season proper across the nook, there is a bunch of adjustments that it’s good to know on your 2022 tax return this 12 months. Lisa Greene-Lewis, TurboTax professional and CPA, is right here with us proper now. All proper, so there are issues that individuals have to know. First and foremost, there have been no stimulus checks final 12 months, have been there?
Lisa Greene-Lewis: Right, these have gone away. If you did not get a stimulus for the third stimulus beneath the American Rescue Plan, tax 12 months 2021 was the final time that you possibly can declare the Recovery Rebate Credit. There is not any extra Recovery Rebate Credit. Also, what individuals have to know, most of the provisions that have been expanded beneath the American Rescue plan, they’re both reverting again to what they have been earlier than the American Rescue Plan, after which a few of these provisions have gone away.
Tracy Byrnes: So issues such as you’re speaking about, the Child Tax Credit, the Earned Income Tax Credit, and the Child and Dependent Care Credit. Those have been expanded and now they are going again.
Lisa Greene-Lewis: Yes, so the Child Tax Credit that was expanded to as much as $3,600, that is going again to as much as $2,000. The Child and Dependent Care Credit, that was expanded as much as $8,000 should you had two or extra youngsters. That’s going again to $2,100 with two or extra youngsters. And then the Earned Income Tax Credit that was expanded to a wider viewers of tax filers if you did not have youngsters. So for tax 12 months 2021, provided that you did not have youngsters, there was no age requirement. But that is going again to it’s important to be 25 or beneath 65 to say the Earned Income Tax Credit.
Charitable Deductions
Tracy Byrnes: Yeah, and people are noticeable credit that individuals are going to see a distinction on their tax returns barring consistency between years. Let’s discuss charitable deductions, as a result of previously, whether or not you itemized or not, you have been capable of take a bit of little bit of a deduction and also you’re saying you’ll be able to’t do this anymore.
Lisa Greene-Lewis: Yes, so for the 90% of taxpayers that declare the usual deduction, they have been capable of declare as much as $300 in money donations and as much as $600 in the event that they have been married, submitting collectively. That goes away. That’s going again to the way in which it was earlier than. In order to say these money contributions, you’ve gotten to have the ability to itemize.
The Inflation Reduction Act
Tracy Byrnes: Right, which is the way in which it is at all times been. This was only a small little present. That means collect your receipts and get out that shoebox stuffed with donations. And lastly, let’s discuss this Inflation Reduction Act. What will we get from that this 12 months?
Lisa Greene-Lewis: Yes, so for the Inflation Reduction Act, there have been many provisions that expanded vitality environment friendly credit, and there are additionally some new provisions in that almost all of them are for tax 12 months 2023, the taxes you file in 2024. But there are a number of that may assist your taxes on this tax 12 months. So the Residential Energy Efficient Credit that’s for photo voltaic that was at 26% of your prices. That goes again as much as 30% for tax 12 months 2022. And then you definately have been at all times capable of get the $7,500 credit score for electrical automobiles. And beneath the Inflation Reduction Act, you possibly can nonetheless get that. But there may be one provision within the new Clean Vehicle Credit that it’s important to be careful for. So should you bought an electrical car after August 16, it needs to be absolutely assembled within the United States in an effort to get the credit score.
Tracy Byrnes: Wow, and I’m positive TurboTax will stroll you thru all of this.
Lisa Greene-Lewis: Yes, so you’ll be able to come to TurboTax and you’ll absolutely hand your taxes over to a TurboTax Live full-service tax professional. And they will do your taxes in a single assembly whilst you sit there and get your taxes accomplished.
Tracy Byrnes: Yeah, and so be sure you get all of your paperwork collectively, together with some doc or certificates that claims the car was put collectively within the United States. Lisa Greene Lewis, TurboTax professional and CPA, thanks a lot for all of that.
Lisa Greene-Lewis: Thank you for having me.
Source: www.thestreet.com”