STANDARD DEDUCTION
For married couples filing jointly rises to $27,700. For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850, and for heads of households, the standard deduction will be $20,800. Plus an additional amount for those over 65.
FORM 1099-K REPORTING DELAY
On November 21, 2023, the Internal Revenue Service announced a delay of the new $600 reporting threshold for calendar year 2023. The agency will treat 2023 as an additional transition year. This will help them work out the kinks so all types of personal transactions won't have to be reported on one's return and then back out.
CAPITAL GAINS TAX RATES
These remain the - 0%, 15% or 20% (depending on your income) on most assets held for longer than a year. Capital gains taxes on assets held for a year or less correspond to ordinary income tax brackets.
MILEAGE RATES
The 2023 mileage rates are 65.5 cents per mile for business purposes. 22 cents per mile for medical and moving purposes. 14 cents per mile for charitable purposes.
THE EXEMPTION CREDIT
For other dependents (other than your child) under 19 or full time student under 24 is still $500. You can also claim other relatives or people who lived with you that made less than $4,700.
CHILD TAX CREDIT (CTC)
is still the previous amount of $2,000 per child under age 17.
ADOPTION CREDIT
For adoptions finalized in 2022, there is a federal adoption tax credit of up to $15,950 per child.
FAMILY CREDITS
Families who don't owe taxes can still claim key tax credits. Families and individuals who qualify can still file their 2021 tax return and claim without penalty some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits. But these returns need to be in by 4/15/2024.
SOLAR CREDITS
Don’t forget your solar credits. They are still at 30%. Mention anything that may qualify to your tax preparer.
VEHICLE AND ENERGY CREDITS
There are still several clean vehicle and energy credits available. Also, there is a previously-owned clean vehicles credit of up to $4,000 for the purchase of an eligible previously-owned clean vehicle with a sale price of $25,000 or less that is placed in service during a tax year by a qualified buyer. To claim the credit, a qualified buyer must meet certain income requirements
IRA Required Minimum Distribution Changes
The age has been increased for first required minimum distribution to be made. It was when you reach age 72, and now you don’t have to take out your first RMD until you reach the age of 73 if you reach age 72 after Dec. 31, 2022.
TAX DUE DATE
Once again, taxed due for 2023 taxes will be as usual on 4/15/2024.
Copyright © 2020 Working Woman Income Tax Service - All Rights Reserved.
Powered by GoDaddy Website Builder