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2022 INFLATION REDUCTION ACT

Multiple tax provisions are included in the Inflation Reduction Act (IRA) of 2022 affecting millions of taxpayers in the 2023 Tax Filing Season.

CLEAN VEHICLE CREDIT

A taxpayer could claim a credit for each qualified plug-in electric drive motor vehicle. The credit for a new clean vehicle can be up to $7,500. A qualified vehicle must have final assembly in North America. The manufacturer's suggested retail price for vans, SUVs, and trucks cannot exceed $80,000 and for any other vehicles $55,000.

Electric Car
Clean, renewable energy or electricity production tax credits and incentives, financial co

Energy Efficient Home Improvement Credit 

The Inflation Reduction Act increases the amount to 30% (previously 10%) of the sum of the amount paid for qualified energy improvements installed during the year. In addition, extends this credit to include property placed in service before January 1, 2033.

 

HOW I CAN REPORT MY VIRTUAL CURRENCY TRANSACTIONS? 

There are many such conversion platforms Some of the better-known ones are:

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TokenTax,

BearTax

CryptoTrader.tax

ZenLedger

CoinTracker

Bitcoin.tax

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Bitcoin BTC cryptocurrency coin with altcoin digital crypto currency tokens, ETC Ethereum,

VIRTUAL CURRENCY

According to the IRS, Virtual Currency is treated as a property, a digital asset.

For 2022, 1040 a rewording of the crypto question is:

 

"At any time during 2022, did you:(a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"

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TAX SEASON 2023

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The IRS has revised form 1040 for the 2022 Income Tax Return. These are some of the changes: 

  • The filing status for Qualified Widower QW changed to Qualifying Surviving Spouse QSS.

  • Added Title- Digital Assets

  • Line 1, 1040 adds specific lines for wages items: (Lines 1a-1z) Some new 10 lines are:

    Line 1a- Total amount from Forms W-2

    Line 1b- Household employee wages not reported on the Form(s) W-2

     

Business using a computer to complete Individual income tax return form online for tax pay
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