Important Tax Updates

EDUCATOR EXPENSE TAX DEDUCTION

  • Teachers and other educators were able to deduct up to $300 of out-of-pocket classroom expenses for 2022. You cannot deduct classroom expenses if you have been reimbursed for them.  You must have receipts to support all deductions.

BUSINESS MEALS

  • Business Owners and Self-Employed Individuals can temporarily take a 100% business expense deduction for meals provided by a restaurant. This is effective for expenses incurred after December 31, 2020 (but will expire at the end of 2022).

MINIMUM AGE FOR DISTRIBUTIONS MADE DURING WORKING RETIREMENT

  • Distributions can be made from certain qualified pensions to workers who are 59 ½ or older and are still currently working. For certain construction and building trades workers, the age is lowered to 55.

QUALIFIED PLUG-IN ELECTRIC DRIVE CAR & CHARGING STATION

  • You may be able to take a credit for a qualified plug-in electric car and alternative fuel vehicle refueling station you purchased. This credit extends through 2032.

PERMANENT TAX EXTENDERS

  • Reimbursed medical expenses that exceed 7.5% of adjusted gross income can be deducted (previously 10%).

RESIDENTIAL (Non-Business) ENERGY-EFFICIENT PROPERTY

  • Federal tax credits for certain residential energy-efficient improvements (insulation, exterior doors, windows and certain roofs) and residential energy property costs (qualifying heat pumps; gas, propane or oil hot water boilers; air conditioning systems; gas, propane or oil furnaces and fans; and certain non-solar water heaters) to existing homes have been extended through December 31, 2032. 
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