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Tax News

Tax News


The Tax Center prides itself on staying current with tax law changes.  Following are some of the areas that commonly affect taxpayers.

Child Tax Credit

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You can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States.

To be a qualifying child for the 2023 tax year, your dependent generally must:

Be under age 17 at the end of the year
Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
Provide no more than half of their own financial support during the year
Have lived with you for more than half the year
Be properly claimed as your dependent on your tax return
Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
Have been a U.S. citizen, U.S. national or U.S. resident alien
You qualify for the full amount of the 2023 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than $200,000 ($400,000 if filing a joint return).

Parents and guardians with higher incomes may be eligible to claim a partial credit.

Capital Gain Tax Rates

For 2023 income tax returns the tax on long-term capital gains (assets owned for more than one year) is calculated at a reduced tax rate of 0% to 20% depending on your filing status and income.

Itemized Deduction Limitation & Personal Exemptions

The current tax bill limits and eliminates some of the items that have been allowed as Itemized Deductions. Mortgage interest will only be deductible on the first $750,000 in principal value on the purchase of your home. Equity loan interest deductions are eliminated. Limits the state and local tax and property tax deduction to $10,000. The charitable contribution deduction is unchanged.

Retirement P lans

The beginning age for Required Minimum Distributions (RMDS) from your retirement plans has been raised from 70 1/2 to age 73.  

Bonus Depreciation and Section 179

Qualifying business assets purchased can be deducted by taking advantage of the bonus depreciation allowance enacted by the TCJA.  For 2023 the bonus depreciation is 80% of the cost and the balance can be depreciated over the life of the asset.

Ask your preparer for more information.
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