For both credits, you could claim the tax breaks if you purchased qualified vehicles and your income does not exceed a certain threshold. Bought a new car? That credit is now worth up to $7,500. Purchase an electric vehicle? Starting in 2023, if you purchased a used electric vehicle, you can get a credit of up to $4,000 (or 30% of the purchase price).Residential Clean Energy (RCE) Credit – If you installed equipment such as solar panels or solar water heaters, you could get a credit valued at 30% of your qualifying expenditures.And, there’s a higher credit limit of up to $2,000 for a separate category of heat pumps, heat pump water heaters, and biomass fuel stoves. The credit limit is up to $1,200 per taxpayer per year with a $600 per item cap on most types of property. If you installed qualifying exterior windows/doors, skylights, insulation materials and more, or purchased a new furnace, hot water heater, or central air conditioner you may be eligible for this tax break. Energy Efficient Home Improvement Credit (EEHIC).Make energy efficient home improvements? The value of two “green” credits has expanded starting with 2023 taxes.Taxpayers who are eligible can receive larger credits due to the lower premiums that households must contribute (now between 0-8.5% of their income). The law expands eligibility to those with a household income above 400% of the federal poverty level. Buy healthcare coverage from the ACA marketplace ()? A temporary rule change lets more people take the Premium Tax Credit (PTC) and receive a larger credit when they do.If this includes you, the silver lining is that you may be able to receive a student loan interest deduction based on any interest payments you’ve made. Restart or make student loan payments? After a repayment freeze due to the pandemic, borrowers were required to make student loan payments again starting in the fall of 2023.Instead, check out the situations below and see what’s relevant to your life. 2023 taxes and new rulesĭon’t worry - you won’t need to have a tax law degree to follow what changes could affect you this tax year. Check out the need-to-know 2023 new tax laws and related changes below. Block has got you covered with an outline of the new tax breaks that can help you get back the most money possible this tax season.
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