KEY INFORMATION YOU NED TO KNOW. STEPS AND TIPS
– Standard deduction;
$13,850 for single and married filing separately filers, $20,800 for heads of households and $27,700 for joint filers and surviving spouses. Add an additional $1,500 if you’re over 65 or blind ($1,850 if single or head of household filing status). These are small increases from last year.
– Energy credits;
- Non-business energy property credit (now the “energy-efficient home improvement credit”), extended through 12/31/32. Here is what qualifies, Energy efficient home improvement credit
- Residential energy-efficient property credit (now called “residential clean energy credit”), extended through 12/31/34. Here is what qualifies, Residential clean energy credit
- Clean vehicle credit. Here is what qualifies, Clean vehicle credit
– Cryptocurrency; virtual currency transactions are becoming more common, and the terminology is ever-evolving. The sale or exchange of virtual currencies, the use of such currencies to pay for goods or services, or receipt of virtual currency in exchange for goods/services generally has tax consequences.
The question on the Form 1040 is now: “At any time during 2023, 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)?”
More information is available at the following link. Cryptocurrency FAQ
– Getting organized;
Now is the time to review your tax withholdings year-to-date. There is still time to make adjustments. In addition, most company-based retirement pans allow for lump sum contributions, as long as they are made on or before year-end.
Here is a listing of suggestions from the IRS. Tax filing checklist
