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.
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:
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)?"
TAX SEASON 2023
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