New Changes Affect Tax Season
New tax provisions in the Inflation Reduction Act of 2022 have surprising implications for both individuals and small businesses this year. Many of the provisions come from tax laws that were extended despite originally being slated for expiration.
The electric vehicle credit was extended for 10 years and now has many more qualifications.
The clean energy tax credit not only extended the solar energy tax credit for 10 years, but now includes water heaters, heat pumps, HVAC systems and more.
Small businesses will benefit from an extension of the 100 percent meals deduction that was instituted last year and is now extended through the 2022 fiscal year.
The Affordable Care Act health insurance premium credits were extended through 2025.
Other credits were not only extended, but have additional benefits.
Navigating through changing tax laws may feel daunting, but a tax professional is able to guide consumers toward the right decisions in the face of many unknowns. A certified public accountant (CPA) can also provide advice and assistance throughout the year for many financial decisions.
“The best thing you can do to save on taxes is to plan ahead and get a good tax advisor,” says Ellen Rose, co-founder of Sternbach and Rose CPAs, a full-service accounting firm serving the entire tri-state area. “Tax laws change every year, and what you don’t know can and will cost you money.”