Changes for Individuals in the 2023 Tax Code

Energy Efficient Home Improvements Credit:

$1,200 credit for energy-efficient home improvements! It used to be only $500 and good for only 1 year. The new credit is good year after year as long as you make the improvements of course.
If you installed qualifying exterior windows/doors, skylights, insulation materials, and more, or purchased a new furnace, hot water heater, or central air conditioner you may be eligible for this tax break. The credit limit is up to $1,200 per taxpayer per year with a $600 per item cap on most types of property.
And, there’s a higher credit limit of up to $2,000 for a separate category of heat pumps, heat pump water heaters, and biomass fuel stoves.

Residential Clean Energy (RCE) Credit:

Shine bright with a 30% credit for installing solar panels or solar water heaters. New York State is also throwing in an additional $5k for your eco-friendly efforts. Green energy is not just good for the planet; it’s fantastic for your wallet too!

Electric Vehicle Credit:
Navigate tax savings lanes with electric vehicles! Whether you choose a new or used model, credits are zooming up to $7,500 for new vehicles and $4k for used. Buckle up, and let your tax journey be as smooth as an electric ride.
You could claim the tax breaks if you purchased qualified vehicles and your modified adjusted gross income does not exceed $300K if married filing jointly, $225K if head of household or $150k if single. Car price can’t exceed $55k and SUV can’t exceed $80K.

Standard Deduction Increases:
$13,850 for singles
$20,800 for heads of households
$27,700 for those married filing jointly.

If you’re over 65 you can add $1500 to the standard deduction or $3K if both spouses are over 65.

The SALT deduction is still capped at $10K but as of this email, it is being debated in Congress, so fingers crossed for positive changes.

Tax filing begins as early as Jan. 23 for this season if you have received all your paperwork.