If you hire contractors, freelancers, or vendors and pay them more than $600 in business-related payments, then you’ll need to prepare and issue a Form 1099.
The form is due to recipients by January 31 and is to be filed with the IRS by February 28.
Correct Form W-9s are the key to correct 1099s. To avoid possible matching notices with the IRS, it is important to ensure that the official name on the W-9 that corresponds with the Taxpayer Identification Number (TIN) matches exactly what is on file with the IRS.
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:
In addition, your modified adjusted gross income (AGI) may not exceed:
The amount of the credit depends on when you placed the vehicle in service (took delivery), regardless of purchase date.
In general, the minimum credit will be $3,751 ($2,500 + 3 times $417), the credit amount for a vehicle with the minimum 7 kilowatt hours of battery capacity.
Vehicles will have to meet all of the same criteria listed above, plus meet new critical mineral and battery component requirements for a credit up to:
A vehicle that doesn't meet either requirement will not be eligible for a credit.
To qualify, a vehicle must:
The sale qualifies only if:
In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:
If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.
The credit equals:
The maximum credit is $7,500. It 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.
The Inflation Reduction Act, H.R. 5376, made broad changes to the clean vehicle tax credit, including extending it through 2032 and creating a new credit for previously owned clean vehicles (Sec. 25E),
For new clean vehicles purchased after Aug. 16, 2022, the tax credit is generally available only if the qualifying vehicle's final assembly occurred in North America (final assembly requirement).
How to check where a vehicle was built
To verify whether a motor vehicle meets the final assembly requirement, dealers and consumers can follow a two-step process (follow link for more information).
https://www.thetaxadviser.com/news/2022/aug/guidance-clean-vehicle-tax-credit.html
The credit amounts and types of qualifying expenses were expanded by the Inflation Reduction Act of 2022.
These expenses may qualify if they meet requirements detailed on energy.gov:
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
Get details on the Energy Efficient Home Improvement Credit.
These expenses may qualify if they meet requirements detailed on energy.gov:
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation:
Get details on the Residential Clean Energy Credit.
The residential energy property credit is nonrefundable. A nonrefundable tax credit allows taxpayers to lower their tax liability to zero, but not below zero.
The following energy efficient home improvements are eligible for the Energy Efficient Home Improvement Credit:
Voices Tax Strategy: RMD changes for 2023
August 15, 2023, 9:00 a.m. EDT
The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 was enacted on Dec. 29, 2022.
SECURE 2.0 was an update to the SECURE Act enacted in December 2019. Both the SECURE Act and SECURE 2.0 made significant changes to qualified retirement plans. SECURE 2.0 had several provisions that were effective immediately or in 2023.
SECURE 2.0 extended the required beginning date for required minimum distributions (RMDs). This resulted in IRA owners who turn age 72 in 2023 no longer being required to take RMDs.
In addition to the waiver of the penalty for failure of inherited IRA beneficiaries to take RMDs in 2021, 2022, and 2023, SECURE 2.0 has also lowered the penalties for failure to take RMDs when they do apply. Beginning in 2023, the penalty for failing to take an RMD is lowered from 50% to 25% of the amount of the required RMD not distributed. The penalty may be further reduced to 10% if the individual takes action to withdraw the sum not taken and submits a corrected tax return and pays any tax in a timely manner within two years after the year of the missed RMD.
The IRS has indicated that, even with the lower penalties, it will continue to consider waiver of the penalties for good cause shown by the taxpayer.
SECURE 2.0 also provided several new exceptions to the 10% penalty, including a withdrawal of up to $1,000 for unforeseeable or immediate family emergency expenses, a withdrawal by an individual certified as having a terminal illness, and, beginning in 2024, up to the lesser of $10,000 or 50% of the vested retirement account balance for an individual who had been subject to domestic abuse.
Other SECURE 2.0 changes
Besides the increase in the RMD age from 72 to 73 effective Jan. 1, 2023, SECURE 2.0 also authorizes employer matching contributions to be made to Roth accounts.
Individuals over age 70½ may make a one-time $50,000 (adjusted for inflation) qualified charitable distribution to a charitable remainder trust or a charitable-gift annuity. As with other qualified charitable distributions, such distributions count toward RMD amounts.
Final regulations
The IRS has stated that when final regulations are issued, they will not be effective until 2024 at the earliest.
