Electric Vehicle Credit

Looking for information on Electric Vehicle credits available with the IRS. Use this link to the IRS website on a complete list of qualified vehicles and available credits. The IRS link: https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

2022 TAX UPDATES AND REMINDERS:

Majority of taxpayers will qualify for the Standard Deductions- $25,900 couples, $12,950 singles, $19,400 Head of Households. Filing Requirements:

 IRSIllinois
Single$12,950 ($1,750 more for 65 plus)$2,425
Married Filing Jointly$25,900 ($1,400 more for each spouse 65 or older)$2,425 each family member
Married Filing Separately$12,950 ($1,400 more 65 or older)$2,425
Head of Household$19,400 ($1,750 more for 65 plus)$2,425 each family member
Dependent Child File Own TaxEarned Income > $12,950, or Unearned Income + $400 > $1,150$2,425
   

Earned Income Tax Credit: Minimum age 25 and Maximum age 65.

Long-term Capital Gains: Income Thresholds have increased for each Capital Gains tax rate. Modified Adjusted Gross Income of $200,000 (Others) and $250,001(MFJ) subject to 3.8% surtax.

Child Tax Credit: Has reverted back to $2,000 for qualifying child under age 17.

Mileage Rates 2022: Business Miles 58.5 Cents/mile before July 1st and 62.5 Cents/mile after June 30th.

Medical Miles 18.0 Cents/mile before July 1st and 22.0 Cents/mile after June 30th.

Energy Credits: Energy Efficient Home Improvement Credit- lifetime limit changed to annual limit of $1,200. Residential Clean Energy Credit- 30% credit on qualifying systems.

Retirement Changes

For Individuals:

Retirement plan early distributions: Reminded for those who split the distributions to be claimed over three years; that this year the last 1/3 amount is to be reported.  If the repayment was chosen, the amount that was repaid in 2022 needs to be reported.

For Business

Net operating loss (NOL): Federal: Can only carryforward the unused portion, no carrybacks. Illinois: The amount cannot exceed $100,000. and unused portion can be carried forward 20 years.