Every year there are new tax laws and updates. We compiled the ones that we believe will have the most impact on our customers this year (for 2023 taxes):
Inflation Adjustment - For the first time in a long time, the tax brackets (determines the percentage you pay in taxes) and the standard deduction (reduces the amount of taxes that most people pay) is going up by 7%. For more info, visit this IRS website.
Clean Vehicles Tax Credit - For those of you that purchased a new or used electric vehicle (including plug-in hybrids) in 2023, you could qualify for a tax deduction of up to $7,500. To qualify, there are certain rules such as the vehicle that you bought has to be a qualifying car and your income level can’t pass a certain level. For more information, please visit this IRS website.
Child Tax Credit (PENDING) - Congress is working on enhancing the child tax credit in a way that allows lower income families and those with multiple qualifying children, to get a bigger Child Tax Credit. Some are suggesting to hold off on doing your taxes until this is figured out but we would not recommend this because it’s hard to say if and when it will be passed by congress and if it eventually does, it can be retroactively applied to your taxes.