Delray Tax Prep

The Earned Income Tax Credit is the federal government’s largest refundable tax credit for low to moderate income workers. Almost a third of those who qualify for the EITC became eligible for the first time this year due to changes in their marital, parental or financial status and may not realize they’re eligible.

People who earned $63,398 or less in 2023 may be eligible for this valuable tax credit.

Other workers at risk for overlooking the EITC include those:

Living in non-traditional homes, such as a grandparent raising a grandchild.
Whose earnings declined or whose marital or parental status changed.
Without children.
With limited English skills.
Who are veterans.
Living in rural areas.
Who are Native Americans.
With earnings below the filing requirement.
Taxpayers can check their eligibility and how much they qualify for at www.IRS.gov/eitc

The EITC is a tax credit for certain people who work and have low to moderate income. A tax credit usually reduces tax owed and may also result in a refund.

For tax year 2023, the EITC is as much as:

$7,430 for a family with three or more children.
$600 for taxpayers who don’t have a qualifying child.

Earned Income Tax Credit (EITC) | Internal Revenue Service If you’re a low- to moderate-income worker, find out if you qualify for the Earned Income Tax Credit (EITC) and how much your credit is worth.

Credits for new clean vehicles purchased in 2023 or after

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.
The credit is available to individuals and their businesses.
To qualify, you must:
• Buy it for your own use, not for resale
• Use it primarily in the U.S.
In addition, your modified adjusted gross income (AGI) may not exceed:
• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers
You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.
The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.

Info for the hustlers: Are you making extra cash selling stuff or providing a service?

Are you making extra cash selling stuff or providing a service? If you sell items or provide a service and get paid by payment card or through a payment app, you may get a Form 1099-K reporting those transactions. Learn m...

Watch out for those ERC Scammers.

Employers: Watch out for Employee Retention Credit schemes | Internal Revenue Service IRS Tax Tip 2023-44, April 4, 2023 — The IRS and tax professionals continue to see third parties aggressively promoting Employee Retention Credit schemes on radio and online.

Here’s how people can pay their federal taxes.

Here’s how people can pay their federal taxes | Internal Revenue Service Tax Tip 2021-50, April 14, 2021