New environmental-related tax credits that benefit both individuals and small businesses are part of the recently enacted Inflation Reduction Act of 2022 (IRA). The Act also extends and changes a few existing credits. New Clean Vehicle Credit (up to $7,500) The IRA extends the current tax credits of up to $7,500 for qualifying electric vehicles,…
A rental property can be a fantastic source of income and offers great tax breaks. Landlords can significantly reduce their tax liability by claiming specific rental property tax deductions, such as deductions for mortgage interest, depreciation, and maintenance. If you are a landlord, then knowing the available deductions and the rules for claiming them can…
IRS expects taxes to be paid on income as it is earned, referred to as the pay-as-you-go system. Therefore, individuals with income that isn’t subject to withholding taxes make estimated tax payments to the Internal Revenue Service (IRS) every quarter. Self-Employed individuals and small business owners must plan, estimate, and pay taxes quarterly to the…
The American Rescue Plan Act (ARPA) expanded the child tax credit for the tax year 2021 to help ease the financial burden on families caused by the pandemic. In 2021, the child tax credit amount increased. In addition, the age limit of a qualifying child increased to 17. It also made the tax credit fully…