With the tax deadline quickly approaching, Lisa Greene-Lewis, CPA and TurboTax tax skilled, outlines the biggest tax changes it’s good to know sooner than submitting.
There are numerous changes for tax 12 months 2022 to concentrate to sooner than submitting your 2023 taxes.
From the American Rescue Plan to the Inflation Discount Act, Lisa Greene-Lewis, CPA and TurboTax tax skilled, discusses each factor it’s good to know.
Learn the entire Q&A beneath or watch the video above.
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Video Transcript:
The American Rescue Plan
Tracy Byrnes: With tax season correct throughout the nook, there’s a bunch of changes that it’s good to know in your 2022 tax return this 12 months. Lisa Greene-Lewis, TurboTax skilled and CPA, is true right here with us correct now. All correct, so there are points that people need to know. At first, there have been no stimulus checks last 12 months, have been there?
Lisa Greene-Lewis: Proper, these have gone away. Should you didn’t get a stimulus for the third stimulus beneath the American Rescue Plan, tax 12 months 2021 was the ultimate time that you simply presumably can declare the Restoration Rebate Credit score. There is no additional Restoration Rebate Credit score. Additionally, what people need to know, a lot of the provisions which have been expanded beneath the American Rescue plan, they’re each reverting once more to what they’ve been sooner than the American Rescue Plan, after which just a few of those provisions have gone away.
Tracy Byrnes: So points reminiscent of you’re talking about, the Baby Tax Credit score, the Earned Earnings Tax Credit score, and the Baby and Dependent Care Credit score. These have been expanded and now they’re going once more.
Lisa Greene-Lewis: Sure, so the Baby Tax Credit score that was expanded to as a lot as $3,600, that’s going once more to as a lot as $2,000. The Baby and Dependent Care Credit score, that was expanded as a lot as $8,000 must you had two or additional kids. That’s going once more to $2,100 with two or additional kids. After which the Earned Earnings Tax Credit score that was expanded to a wider viewers of tax filers if you happen to didn’t have kids. So for tax 12 months 2021, offered that you simply didn’t have kids, there was no age requirement. However that’s going once more to it’s vital to be 25 or beneath 65 to say the Earned Earnings Tax Credit score.
Charitable Deductions
Tracy Byrnes: Yeah, and persons are noticeable credit score that people are going to see a distinction on their tax returns barring consistency between years. Let’s focus on charitable deductions, because of beforehand, whether or not or not you itemized or not, you’ve gotten been able to take a little bit of little little bit of a deduction and in addition you’re saying you’ll have the ability to’t do that anymore.
Lisa Greene-Lewis: Sure, so for the 90% of taxpayers that declare the standard deduction, they’ve been able to declare as a lot as $300 in cash donations and as a lot as $600 within the occasion that they’ve been married, submitting collectively. That goes away. That’s going once more to the best way wherein it was sooner than. With a purpose to say these cash contributions, you’ve gotten to have the power to itemize.
The Inflation Discount Act
Tracy Byrnes: Proper, which is the best way wherein it’s always been. This was solely a small little current. Meaning accumulate your receipts and get out that shoebox filled with donations. And lastly, let’s focus on this Inflation Discount Act. What is going to we get from that this 12 months?
Lisa Greene-Lewis: Sure, so for the Inflation Discount Act, there have been many provisions that expanded vitality surroundings pleasant credit score, and there are moreover some new provisions in that the majority of them are for tax 12 months 2023, the taxes you file in 2024. However there are a variety of that will help your taxes on this tax 12 months. So the Residential Power Environment friendly Credit score that’s for picture voltaic that was at 26% of your costs. That goes once more as a lot as 30% for tax 12 months 2022. And you then definately have been always able to get the $7,500 credit score rating for electrical cars. And beneath the Inflation Discount Act, you presumably can nonetheless get that. However there could also be one provision throughout the new Clear Car Credit score that it’s vital to watch out for. So must you purchased {an electrical} automobile after August 16, it must be completely assembled inside america in an effort to get the credit score rating.
Tracy Byrnes: Wow, and I’m constructive TurboTax will stroll you via all of this.
Lisa Greene-Lewis: Sure, so that you’ll have the ability to come to TurboTax and also you’ll completely hand your taxes over to a TurboTax Dwell full-service tax skilled. And they’re going to do your taxes in a single meeting while you sit there and get your taxes achieved.
Tracy Byrnes: Yeah, and so be certain you get all your paperwork collectively, along with some doc or certificates that claims the automobile was put collectively inside america. Lisa Greene Lewis, TurboTax skilled and CPA, thanks lots for all of that.
Lisa Greene-Lewis: Thanks for having me.
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