Here’s what you need to know about provisions in the Inflation Reduction Act of 2022 that can save you money on taxes:
- Vehicle: For the first time, you may be eligible for a dollar-for-dollar tax credit up to $4,000 or 30% of the sales price (whichever is lesser) for buying a used electric vehicle, depending on your income. You may still be eligible for up to a $7,500 tax credit for purchasing a new electric vehicle. Also, the tax credit for installing an electric charging station at your homes is extended.
- Home: If you purchase energy efficient items like solar panels, solar water heaters, windows, doors, and skylights for your home, you may be able to take a tax credit for 30% of your purchase.
- Healthcare: Subsidies for health insurance purchased from the Health Insurance Marketplace that were expanded in 2021 and 2022 are extended. If you didn’t receive enough subsidy based on your income when you purchased health insurance in the Health Insurance Marketplace, it can be a premium tax credit when you file your taxes.
Check out the TurboTax blog for more details.