Q. What residential clean energy expenditures are eligible for the Residential Clean Energy Property Credit?

A.  Solar panels, Solar water heaters, and Wind turbines

 

Q. Are roofing expenditures necessary for the installation of solar panels eligible for the credit?

A.  Traditional roofing materials and structural components do not qualify; however, some solar roofing tiles and solar roofing shingles serve as solar electric collectors.

 

Q.  What is the difference between a hobby and a business?

A. Hobbies are for personal enjoyment, not to make a profit.  A business expectation is to make a profit.

 

Q. What is the 2023 maximum EITC (Earned Income Tax Credit) for qualifying taxpayers with three or more children?

A. The EITC amount is $7430.

 
Q. What is the foreign earned income exclusion for the year 2023?

A. $120,000

 

Q. What is the maximum credit allowed for adoptions for the tax year 2023?

A. The number of qualified adoption expenses is up to $15,950.

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Q. How do I know if I qualify for the adoption credit?

A. (1)If you have adopted a child, other than a step child, who is under 18 or physically or mentally unable to care for themselves. (2) Be within the income limit. In 2023, families with a modified adjusted gross income below $239,230 to $279,230 can claim partial credit. Families above $279,230 cannot claim the credit.  

 

Q.  What is the max amount that individuals can contribute to their 401(k) plans in 2023?

A. The contribution amount has increased to $22,500.

 

Q.  Is there a penalty for not having healthcare?

A. No, the penalty has been reduced to zero; however, individuals who meet certain income, coverage, and other criteria are eligible to receive a refundable tax credit.

 

Q. What are the two methods used to report the Home Office Deduction?

A.  The actual expense method or the simplified method.

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Q. What is a 1099-K form?

A. If you received earnings from an online marketplace like, PayPal, Venmo, Cashapp, etc, then you will receive a 1099-K form in the mail. 

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Q. What do I do with my 1099-K form once I receive it?

A. Save the form and discuss it with your tax preparer. Although the ruling has been delayed, you still must report it as taxable income. See our newsletter and/or call for a consultation. 

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Q. What are the two energy credits?

A. Energy Efficent Home Improvement Credit and the Residential Clean Energy Credit.