A new tax season means new changes to navigate. WINK News has what you need to know before you file in 2023.
Tax season is the busiest time of year for James Chouinard, a certified public accountant with Chouinard, Massie & Reilly CPAs, PLLC.
“Because of preparing all the tax returns and doing the 1099s,” Chouinard said. “We have to get all of those out before Jan. 31, and then February really starts ramping up because most of the people really have all of their tax documents and we’re getting ready to do their tax returns.”
Chouinard says you’ll see some inflation-related adjustments this year, and the charitable donation credit is different.
“You don’t get a deduction for those,” Chouinard said. “Right off the bat, last year you got $300 for an individual, $600 for a married filing joint. This year, you don’t get that—it’s going to be an itemized deduction. If you can itemize, then you can get the charitable donation deduction.”
Good news: Those of you with Hurricane Ian damages could have some tax advantages.
“I think we’re going to see a lot of casualty losses for this part because of Hurricane Ian, and the casualty losses because it’s a declared disaster area… there’s a little more benefit to that,” Chouinard said. “You’re going to need to know the cost of the declared disaster. You need that cost, what you think the fair market value is at the date before the disaster hit, and any document you have that documents the disaster.”
But only if your insurance company didn’t pay out your claim all the way, which is the case for many people in Southwest Florida.
Don’t forget about energy-efficient home improvements. You’ll get a 30% tax break or $1,200 yearly for updating your breaker box, appliances, doors and windows, and by switching from a gas furnace to a heat pump.