Current Information
- The California Middle Class Tax Refund is tax free to both California and IRS. However, since the Franchise Tax Board has been sending out 1099-M's for the amount, we will have to include it in your return, then exempt it.
- Most of the COVID tax breaks are gone --including the Unemployment Benefit Exemption; the "above the line" charitable donation deduction; the enhanced Child Tax Credit; the Advance Child Tax Credit; the enhanced Child and Dependent Care Tax Credit; the over-65 Earned Income Tax Credit; and the self-employed Unemployment Benefit.
- The $600 Threshold for 1099-K for pay apps such as Zelle, Cash App, PayPal and so on. The IRS finally gave guidance on this, by postponing implementation until 2023.
- Good News the federal Solar Credit will remain at 30% through 2032, rather than start phasing down this year!
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