Every year there are additions, deletions, and changes to the deductions available for individuals and businesses. This is one of the areas BCA keeps our clients up to date with. Here are some for 2023 that you should be paying attention to.

It’s important to note that the tax deductions and incentives related to the Covid-19 pandemic are being phased out. As a result, you may receive smaller refunds or even owe more taxes during tax season. It’s crucial to plan ahead to ensure that your payments align with what you owe in taxes for the year.

As 2023 begins, it’s important for individuals and businesses to stay informed on the latest tax deductions and credits available. At BCA, we keep our clients up-to-date on the additions, deletions, and changes in deductions each year. Here are some of the key tax deductions for 2023 to keep in mind:

1. Medical Expenses: The deduction for medical expenses for individuals and businesses remains in place for 2023. Individuals can deduct expenses for themselves, their spouse, and dependents if the total medical expense exceeds 7.5% of adjusted gross income according to the IRS.
2. Child Tax Credit: The Child Tax Credit of $2000 per child dependent under 17 is still available for 2023. This credit has been in place since the Taxpayer Relief Act of 1997 and can be claimed in addition to the Child and Dependent Care Credit.
3. IRA Contributions: Tax-deductible contributions to an IRA can be made until April 18th, with a limit of $6000 for individuals under 50 and $7000 for those 50 and older. However, if you have a 401(k) or other plans, this deduction may be impacted.
4. Gig Workers: Gig workers, including ride-share drivers, can take advantage of several deductions related to vehicle expenses such as mileage, insurance, maintenance, and even home office expenses related to their gig work.
5. Energy Efficient Homes: The Inflation Reduction Act of 2022 extended 2021 credits for energy-efficient home improvements, offering up to a $500 credit on your tax return.
6. New Tax Advisor: If you’re doing your own taxes or have been using the same tax advisor for years, consider getting a fresh perspective for 2023. With recent changes, a second opinion may help you find additional deductions and credits.
7. Teachers: As a thank you for their hard work, teachers can deduct up to $250 in unreimbursed expenses for the classroom. The IRS provides additional information here: Teachers’ Educational Expenses
8. Earned Income Tax Credit (EITC): The EITC is a valuable tax credit for low to moderate-income workers, and BCA has a dedicated blog post on this topic.

These are just a few of the deductions available for 2023. At BCA, we can help review your personal situation and assist you in finding additional deductions to maximize your savings.

Disclaimer: This article is for informational purposes only and is not legal, tax, or financial advice. BCA is not a licensed professional services firm. We help clients assess their situations and work with licensed attorneys, tax advisors, and other qualified professionals on your behalf. Read our full Disclaimer and Terms of Use. Have questions? Contact BCA and let us put the right team together for you.