News & Updates in the Accounting World
Arizona Families Tax Rebate
The State of Arizona issued a rebate in late 2023 to all taxpayers who had qualifying dependents in 2021. Unfortunately, the IRS has deemed these payments as Federally taxable income for 2023 (The payment is not taxable income for Arizona). You can track your status, check eligibility, file a claim if you did not receive it and should have, and access the 1099-Misc for the payment.
https://azdor.gov/individuals/arizona-families-tax-rebate
If you received the payment we will need the 1099-Misc to complete your taxes. It appears they will not be mailed, you must access the form digitally through the above ADOR site. Please let us know if you have questions!
Inflation Reduction Act & Energy Efficient Home Improvement Credits FAQs
The Inflation Reduction Act of 2022 (IRA), amended the credits for energy efficient home improvements, the IRS had provided guidance on the changes. Click Here to view the IRS FAQs.
Clean Vehicle Tax Credit
If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.
The credit equals:
$2,917 for a vehicle with a battery capacity of at least 5 kilowatt hours (kWh)
Plus $417 for each kWh of capacity over 5 kWh
The maximum credit is $7,500. It is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.
The Secure Act 2.0 & Retirement Savings
Some Notable Changes:
"Savers Credit" converted from a credit to a direct government contribution of up to $2,000 into an IRA.
Employers can now treat their employees’ student loan payments as if they were 401(k) contributions for the purposes of employer matching;
An increase in the catch-up contribution available to employees reaching age 60; and
The RMD age is increased to 73 on 1/1/2023 and will increase to 75 in 10 years.
Higher catch-up Contribution Limits.