Trustaxx Inc.

01/25/2024

Hi FB friends,

We know tax season is practically here and we cant wait to file our paperwork and get it over with. But i wanted to relay some information in regards to some tax credits related to children you may be claiming.

The child tax credit remains $2,000 per child (or qualifying dependent) for the 2023 tax year and is nonrefundable, which means taxpayers won’t receive the full credit if it’s larger than the tax they owe.

The other dependent care (ODC) credit is for older children and aging parents who are dependents that don’t qualify under the child tax credit. It has a maximum value of $500.

The EITC, which gives a tax break to low and moderate income families, has been adjusted for inflation, so there’s an increase for taxpayers. It's worth a maximum of $7,430 for families with three or more children.

If you have any questions related to these credits or general tax questions. Please contact us at any one of our 3 locations to help explain and assist with your filing needs.

01/30/2023

An IRS in regards to Form 8962 Rejections
The IRS is rejecting electronically filed federal returns if the taxpayer received a subsidy to help pay for their health insurance and their return does not include the Form 8962. The return will not be accepted until the Form 8962 is completed and included with the return. If the return is sent in on paper and it does include the Form 8962 when it should, the IRS will send the taxpayer a notice (Letter 12C) requesting the Form 8962 and the processing of the return will be delayed until the IRS receives it.

Form 1095-A
The Form 1095-A (Health Insurance Marketplace Statement) has the information (including the amount of subsidy they received) that is needed to complete the Form 8962. The Form 1095-A is sent to all individuals who obtained their insurance through an Exchange by the end of January.

01/20/2023

Have you heard? There are new clean vehicle credits for qualified plug-in electric vehicles. The IRS has frequently asked questions about clean vehicle credits for new, previously owned and commercial clean vehicles.

IR-2022-231, December 29, 2022 — The Internal Revenue Service today released frequently asked questions (FAQs) about clean vehicle credits for new, previously owned and commercial clean vehicles in Fact Sheet (FS-2022-42).

01/20/2023

The Internal Revenue Service announced that Monday, January 23, 2023, will be the beginning of the nation's 2023 tax season when the agency will begin accepting and processing 2022 tax year returns.