Your Villa Magazine - Moreno Valley - Perris - February - March 2023

Comparison of Education Credits Lifetime Learning Credit: Maximum credit per student $2000 Available for all post-secondary education. Available for one or more courses. Available for an unlimited number of years. American Opportunity Credit: Maximum credit per student $2500; 40% is refundable. Available for four years of college, enrolled at lease half-time for at least one academic period. Income Phase Out: Married Jointly: $160,000 - $180,000 All Others: $ 80,000 - $ 90,000 Income Phase Out: Married Jointly: $160,000 - $180,000 All Others: $ 80,000 - $ 90,000 2022 Mileage Deductions Social Security Benefits A portion of your Social Security Benefits will be taxable if your other sources of income, combined with half of your Social Security benefits exceed a base amount determined by your filing status. See the experienced staff at Tax Comp to help you plan for the taxable portion of your social security benefits. Owe Money? Get a Fresh Start with the IRS Fresh Start Initiative ... Settling Your Tax Debt for Less The Fresh Start Initiative presents a great opportunity to get your finances back in order. The Fresh Start Initiative includes four components to help struggling taxpayers: 1. Tax Liens: The Notice of Federal Tax Lien filing threshold remains at $10,000. 2. Installment Agreements: Fresh Start Initiative provisions raised thresholds on balances due and the time given to pay tax liability. Are you behind on your taxes but still looking for a tax break? Sound too good to be true? Actually, you just might be the perfect candidate for the Internal Revenue Service Fresh Start Initiative. Office Manager Joe 9idrio, wife Chynna, daughters, %rinley and /ennox IRS IRS TAX COMP 3. Offers-in-Compromise: The Fresh Start initiative also provides for a streamlined offer-in-compromise process. 4. Penalty Abatement: You may be able to abate or reduce tax penalties incurred due to late filing or late payment if you have a reasonable cause. Residential Solar Credit Extended through 2034! Credits that were due to expire in 2026 have been extended to 2034. In addition the credit percentage has been increased to 30%! To qualify, you must have purchased and installed solar in 2022. If you don’t have solar yet, ask Tax Comp how much you could save on your tax bill with residential solar. MILES DRIVEN JAN 1 - JUN 30 JUL 1 - DEC 31 Qualified business miles: 58.5¢ 62.5¢ Medical or moving purposes: 18¢ 22¢ Charitable organizations: 14¢ 14¢ Cool Parents Pay She is 19 years old and going to college. You are still paying for everything: Tuition, booNs, insurance, room, and board. 1ow that she has a part-time job, she wants to file her own tax return in order to get the tax benefit. %efore you encourage this bit of independence, first evaluate how the lost deduction and tax credit will affect your tax situation. It may be that it costs more than you expected. 'on’t add additional expenses to the college burden. (ven though cool parents pay for college...it’s not cool to pass up legitimate tax savings. SUNNYMEAD BLVD. COTTONWOOD AVE. EUCALYPTUS AVE. EUCALYPTUS AVE. DAY ST. FREDERICK ST. OFFICE LOCATION Convenient Moreno 9alley /ocation MILES DRIVEN JAN 1 - JUN 30 JUL 1 - DEC 31 Qualified business miles: 58.5¢ 62.5¢ Medical or moving purposes: 18¢ 22¢ Charitable organizations: 14¢ 14¢ 18 | TAX COMP | 23025 ATLANTIC CIRCLE, SUITE D, MORENO VALLEY, CA 92553 | www.TaxComp.net | 951.486.9862 | admin@taxcomp. net