The Money Mustache Community
General Discussion => Welcome and General Discussion => Topic started by: lightmyfire on December 13, 2022, 02:57:52 PM
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Hi all,
I installed 2 new mini split units this past summer. Though the Inflation Reduction Act was passed after the fact, it is my understanding that the tax incentives related to the Energy Efficient Home Improvement portion of the bill apply to improvements made in 2022. Is this correct?
If so, do you recommend going the professional tax preparer route this year? I usually just use the free software to file my very basic taxes, but the information regarding these incentives is vague about what exactly needs to be done to claim them, and it sounds like it might be different state to state.
Thanks for any and all guidance!
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I installed 2 new mini split units this past summer. Though the Inflation Reduction Act was passed after the fact, it is my understanding that the tax incentives related to the Energy Efficient Home Improvement portion of the bill apply to improvements made in 2022. Is this correct?
The way Part II of Form 5695 (https://www.irs.gov/forms-pubs/about-form-5695) works didn't change (much?) from 2021, so from that perspective you may get some credit for 2022 work.
But the big changes in the renamed Energy Efficient Home Improvement Credit start in 2023 (https://www.taxpayeradvocate.irs.gov/news/tas-tax-tip-what-the-inflation-reduction-act-means-for-you/), so if you are thinking about rushing to get things done in 2022, waiting might be better.
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I've used turbotax for ages (so have some inertia to switching to a lower cost software), but I find it does a fine job of figuring out tax credits for home improvements. I would try using your tax prep program first and upgrading to better software if needed; it will still be less expensive than using a tax professional.