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I try to add tax blog articles weekly on tax topics that may be interesting to you. Please browse. If there is a topic you would like to see here or would like to more information on, please contact me.
Energy Jolts, Inflation Bolts, Tax Hikes and Pending Legislation
Energy Jolts. Energy Credit is back. Effective for 2022 –2032 tax years. Part of Inflation Reduction Act of 2022. Requires product availability and affordability.
Credit is 30% of purchase price for energy star certified windows, exterior doors, insulation, water heater, biomass stoves, furnace or boiler installed during the year. No credit for Energy Star roof replacement/installation.
The JOLT? No cash refund for energy credit. Reduces tax. Causes refund of tax already paid. Reduced Privacy. Starting in 2024, installed product ID number must be included on tax return. Credit Limits: Windows $600.00 per year. Doors up to $500.00. Heating/cooling equipment $2,000.00. Includes an electrical panel upgrade if new equipment requires.
Electric Vehicle Credit-New. Up to $7,500.00 for new vehicle if all requirements met. Requires North American assembly. Dealer documents and certifies maximum vehicle credit.
The JOLT? Got $65,000? Credit reduces tax, no cash refund. Credit reduced when Taxpayer’s taxable income $150,000+ single/300,000 Married Filing Joint.
Electric Vehicle Credit—Used. (sorry “Pre owned”). Vehicle must be 2+ years old, one owner, Dealer sale, Price under $25,000 and all additional requirements must be met.
The JOLT? Privacy. Vehicle identification number required on tax return for credit. Watch market Constraints.
Inflation Bolts. Government behaving badly: deficit spending and running the money press. Result: Money is plentiful (“cheap”) making purchases more expensive also known as inflation. Conditions require continual money printing to prevent system collapse. Could get worse. Pay down debt. Take advantage of bargains, sales etc. Live within your means and VOTE.
Gas prices: According to Kiplinger, refineries are processing gasoline and heating fuel, so gas prices should drop to at least 3.50/gallon nationally. No anticipated price breaks for diesel. Check Propane/Natural Gas prices. Could go higher. Historically prices tend to be lower in July or August and climb in winter. If can fill tank or lock in at a “good” price do it now.
Real Estate Tax Hikes: Seneca County Auditor website shows projected real estate tax changes for each property based on the November 2022 levies. Use the property search bar. Check out the tax changes on your county Auditor’s website and vote your mind and conscience.
Congressional Hijinks: Tweaking retirement contribution and Required Minimum Distribution rules. Possible proposals (not law yet): Changing RMD age from 72 to 75, increasing contributions for taxpayers over age 50, increasing Saver’s Credit, allowing part time workers to participate in 401Ks and possibly adjusting Roth contribution rules. . Will keep you posted.