what's new in taxes 2020

Earned Income Tax Credit

January 26th, 2023|Taxes|Comments Off on Earned Income Tax Credit

The maximum EITC for 2022 is $3,733 for one qualifying child, $6,164 for two and $6,935 for three.  Taxpayers with no children can qualify for a maximum of $560.  The credit is no longer available to those under 25 with no children, or to those over age 65.

Dependent Care Credit

January 26th, 2023|Taxes|Comments Off on Dependent Care Credit

The qualifying expenses to figure the credit are $3000 for one qualifying child or $6000 for more than one.  The credit ranges from 35% down to 20%, depending on income. There are several other tests you must meet to claim the credit: You (and your spouse, if you're married) must have "earned income," meaning money earned from a job. Non-work income, such as investment profits, doesn't count. [...Read More]

Mileage Allowance

January 26th, 2023|Uncategorized|Comments Off on Mileage Allowance

The standard mileage rates for 2023 are: Self-employed and business: 65.5 cents/mile Charities: 14 cents/mile Medical: 22 cents/mile Moving (military only): 22 cents/mile

IRA

January 26th, 2023|Uncategorized|Comments Off on IRA

There is no longer an age limit on making regular contributions to traditional or Roth IRAs. Contributions may be made as long as you have earned income. For 2023, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than: $6,500 ($7,500 if you're age 50 or older), or If less, your taxable compensation for the year. [...Read More]

Educator Expenses

January 26th, 2023|Uncategorized|Comments Off on Educator Expenses

The Educator Expense Deduction allows eligible educators to deduct up to $300 worth of qualified expenses from their income for 2023. Qualified expenses include books, classroom supplies, and technology and computer software used in the classroom during the process of teaching students. Eligible educators have to work as a teacher, instructor, counselor, principal or classroom aide, work with students in kindergarten through grade 12, and complete [...Read More]

Standard Deduction

January 26th, 2023|Taxes|Comments Off on Standard Deduction

The standard deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased. The standard deduction amounts for 2023 are: $27,700 – Married Filing Jointly or Qualifying Surviving Spouse (increase of $1,800) $20,800 – Head of Household (increase of $1,400) $13,850 – Single or Married Filing Separately (increase of $900) For 2023, the additional standard deduction amounts for taxpayers who are 65 [...Read More]

Child Tax Credit

January 26th, 2023|Taxes|Comments Off on Child Tax Credit

If you have a child, you may be eligible for the Child Tax Credit. For 2023, the credit is up to $2,000 per qualifying child. To qualify, a child must: Have a Social Security number Be under age 17 at the end of 2023 Be claimed as a dependent on your tax return A portion of the Child Tax Credit is refundable for 2023. This portion [...Read More]

Rate Changes

January 26th, 2023|Taxes|Comments Off on Rate Changes

  Tax brackets 2023 Tax Rate Single Married filing jointly Married filing separately Head of household 10% $0 to $11,000. $0 to $22,000. $0 to $11,000. $0 to $15,700. 12% $11,001 to $44,725. $22,001 to $89,450. $11,001 to $44,725. $15,701 to $59,850. 22% $44,726 to $95,375. $89,451 to $190,750. $44,726 to $95,375. $59,851 to $95,350. 24% $95,376 to $182,100. $190,751 to $364,200. $95,376 to $182,100. $95,351 [...Read More]

Capital Gains

January 26th, 2023|Taxes|Comments Off on Capital Gains

2023 Long-Term Capital Gains Tax Rates Tax Rate 0% 15% 20% Filing Status Taxable Income Single Up to $44,625 $44,626 to $492,300 Over $492,300 Head of household Up to $59,750 $59,751 to $523,050 Over $523,050 Married filing jointly Up to $89,250 $89,251 to $553,850 Over $553,850 Married filing separately Up to $44,625 $44,626 to $276,900 Over $276,900 2024 Long-Term Capital Gains Tax Rates Tax Rate 0% [...Read More]