Electric vehicle tax credits can be highly valuable, but there are a lot of confusing rules regarding how they work. This guide will show you what you need to know about tax credits on plug-in electric vehicles. It will also answer some of the most common questions people have.
What Are the Electric Vehicle Tax Credits?
The Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), which is now known as the Clean Vehicle Credit, was amended by the Inflation Reduction Act of 2022 (Public Law 117-169), and a new requirement for final assembly in North America was added as a result of this legislation.… Read the rest
Tax season is going to be here before you know it. Therefore, now is the time to ensure that you have completed all of the energy-efficient upgrades to your home.
Having an energy-efficient home will save money on your bills and pay less money in taxes. Learn how you claim home energy tax credits if you qualify.
Non-Business Energy Property Credit
You can get a 30% credit for your energy-efficient improvements. Things that fall under this category include:
- Water heaters
- Electric heat pumps
- Central air conditioners
- Natural gas, propane, or oil water heaters
- Qualified oil furnaces
- Qualified oil hot water boilers
- Some air circulating fans
- Insulation that reduced heat loss or gains
- Exterior windows, skylights, or doors
- Storm windows and doors
- Solar panels
- Metal and asphalt roofs that reduce heat loss or gain
Residential Energy Efficient Property Credit
This energy tax credit will allow you to have a 30% credit for the alternative energy equipment that you have installed.… Read the rest
Even if you have the best insurance plan, you still might end up paying medical bills. However, all hope is not lost. You can still get a tax break from your medical expenses that can help reduce your overall medical costs.
In 2019, the IRS allowed you to deduct medical expenses that exceeded 7.5% of your adjusted gross income.
Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.… Read the rest
The W-2 Form is one of the most essential forms in the tax world. It details what you’ve been paid by your employer.
The first point is to remember that the W-2 form is entirely different from your W-4 form. This details any payment that has been withheld as tax by your employer. Any employer that has paid you at least $600 during the tax year must send you a W-2.
Contractors and freelancers will receive 1099s because they don’t have employers; they have clients.… Read the rest
Do you want to reduce your tax bill this year? You can maximize your tax savings by checking to see if you’re eligible to claim any of the new expanded tax credits.
The difference between a tax credit and a deduction is a deduction reduces your taxable income, whereas credits reduce the amount of tax you pay directly. Refundable credits are even better because they can reduce your tax bill even if the credit is worth more than you owe. Non-refundable credits are only valid up to the amount you owe.… Read the rest