![]() “Workers unfortunate enough to work remotely while assigned to an office in New York or another state with a convenience rule may find themselves double taxed without the opportunity to claim a credit for taxes paid to other states.” Tax day “Four states - Delaware, Nebraska, New York, and Pennsylvania - have a ‘convenience rule’ while Connecticut has a ‘retaliatory’ convenience rule levied only against those who reside in other states with their own convenience rule,” Jared Walczak, vice president of state projects at the Tax Foundation, told Yahoo Finance. In 20, some states enacted temporary relief provisions to avoid double taxation of income by two states - that state where your employer is located and the state where you worked from - but many of those provisions expired for the 2022 tax year. If your employer is outside the state where you worked remotely, there may be tax implications on your state taxes. Some employers continued remote and hybrid work into 2022. Remote workers could face double taxation The deduction - which was enacted under Section 419 of the Tax Relief and Health Care Act of 2006 and extended annually - was not renewed for the 2022 tax year and is no longer available to be itemized. Lenders generally require mortgage insurance as protection from default for homeowners who put less than 20% down when purchasing a home. Homeowners who pay a mortgage insurance premium or for private mortgage insurance can no longer deduct this on their itemized taxes. Mortgage insurance premium deduction expired If the credit was taken at the time of purchase at the dealership, then taxpayers will be ineligible for the credit on their tax return. “Taxpayers will need to confirm that the vehicle they purchased qualifies for the credit and for the correct amount.” “For the EV credits, 2022 is a done deal,” Robert S. That requirement doesn’t apply to vehicles purchased earlier in 2022 when the act wasn’t signed. 31, 2022, must show that the vehicle underwent final assembly in North America to qualify. ![]() That hasn’t changed, but those who bought the vehicle between Aug. Eligibility for electric vehicle (EV) Tax CreditĬonsumers who bought a new electric vehicle (EV) are eligible to receive the Qualified Plug-in Electric Drive Motor Vehicle Credit with a maximum $7,500 depending on the capacity of the battery. There is also no cap on the credit or income limitations.Īdditionally, the act removed the principal residence restriction, meaning homeowners who installed solar products on second or vacation homes are also eligible for the credit. You can now subtract 30% of the installation costs for solar heating, solar electricity (such as panels), and other solar products for the home, up from 26%. The act increased the Residential Clean Energy Credit. Increased credit for solar energy products The Inflation Reduction Act signed into law in August of last year provided a few new tax breaks that filers could take advantage of in the 2022 tax year. In 2021, the deduction was expanded, with single filers and those married filing separately getting up to $300 and joint filers deducting up to $600.Ĭredit: Getty Images Say hello to Inflation Reduction Act tax breaks ![]() Married filing separately taxpayers could deduct up to $150. In 2020 the CARES Act allowed single filers and married couples filing jointly to deduct up to $300 in charitable donations without having to itemize their return. That’s a big change from the last two years when the IRS offered an above-the-line deduction for contributions. Charitable deductions must be itemizedįor taxpayers this year filing their 2022 tax returns, any charitable contributions must be itemized using the Schedule A form to get a deduction. Similarly, the Child and Dependent Care credit - which includes out-of-pocket expenses for child care and day camps - is worth up to $2,100 for the 2022 tax year, down from $8,000 for the 2021 tax year. ![]() The maximum amount that single filers with no children can get from the EITC is $500, down from $1,500 last year when the credit’s income thresholds were temporarily expanded.
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