Photographs in photo-illustration of tax forms: car by Kindel Media/UNSPLASH; Tax Documents BY Kelly Sikkema/UNSPlaSH; Woman and baby by Andrea Piacquadio/UNSPLASH; HVAC BY Oksana Shufrych/Getty Images
Tax season is upon us, and this year expanded credits may help lower your bill—if you know what they are and how to get them. We spoke to local tax experts about three potential opportunities.
Clean Vehicle Credit
People who bought a new electric vehicle on or after January 1, 2023, could be eligible for up to $7,500 in tax credit. Qualifying cars purchased from that date through April 17, 2023, start with a baseline $2,500 credit, which is increased up to $7,500 if the car meets battery requirements. If you bought a vehicle from April 18, 2023, onward, it must hit two key criteria to receive the credit: Filers get $3,750 for meeting a certain battery requirement, and the other $3,750 is credited if you reach a critical-minerals requirement. In order for the filer to clinch the benefit, both dealer and buyer need to report the vehicle information. “The dealer needs to give you, the vehicle holder, the information about it when it’s purchased, so that’s a little different than the past,” says Fred Fanucci, a partner at Citrin Cooperman in Bethesda. “They’re also required to report that to the IRS. If the dealer doesn’t do their part, you may not be able to qualify for the credit.” The credit is phased out at different incomes: $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for everyone else.
Energy Efficient Home Improvement Credit
If you gave your residence a green makeover in 2023, you could qualify for a tax credit of as much as $3,200 on the upgrade, thanks to the Inflation Reduction Act. The credit covers up to 30 percent of qualified expenses dedicated to home-energy updates, and it restarts each year thereafter (through 2032). Improvements include new windows and doors, heat-pump installations, and home-energy audits, each with its own credit cap. Similar to the EV credit, you also need to prove that upgrades meet the requirements. “It’s important to have receipts and documentation that you are installing the energy-improved equipment,” says Fanucci. “The people who are installing and doing that should know whether those standards are met or not.” There are no income minimums or maximums for this credit.
Child Tax Credit
While right now the Child Tax Credit re-mains the same as last year, tax pros recommend keeping an eye on legislation that could impact the credit after the April filing deadline. An expanded version of the credit passed through the House of Representatives in January, with changes that would mainly affect lower-income families who don’t currently qualify. A provision increases the refundable portion of the additional child tax credit (now capped at $1,600 per child) to $1,800 per child in 2023, $1,900 per child in 2024, and $2,000 per child in 2025, adjusting for inflation. The legislation is currently with the Senate, but don’t worry if you file taxes before a bill goes through, says Andrew Lampropoulos, a CPA at YHB in Falls Church: “The IRS would go back and give you credit for that. It wouldn’t have to be an amended return or anything—that’s something they would do.”
Top Tax Accountants
Need advice on your taxes? These accountants were on our most recent list of top wealth advisers, in the January 2024 issue; they received the most votes from other financial professionals in the region. Almost all are certified public accountants (CPAs) or enrolled agents (EAs) and not only can handle tax returns but also can often suggest ways to reduce your taxes. We’ve noted when they have certain other credentials, such as a law degree (JD) or certifications in financial planning (CFP and PFS).
Courtney Adam
Turner Leins & Gold, Vienna
Jeremy Bendler
Bendler & Company, Bethesda
Sharon Berman, CFP
BDO, McLean
Lisa Blackmore
Aprio, Rockville
Steven M. Braunstein
Snyder Cohn, North Bethesda
Daniel Cohen
Marcum, Rockville
Walter H. Deyhle
GRF CPAs & Advisors, Bethesda
Brett Donahue
Huey & Associates, Herndon
Gary P. Fitzgerald, PFS
Fitzgerald & Co. CPAs, Vienna
Brian Gershen
CohnReznick, Bethesda
Harry A. Harrison
Aprio, Rockville
Joan Holtz, CFP, PFS
BDO, McLean
Robert Hottle, PFS
Baker Tilly, Tysons
Shawn M. Howard
Citrin Cooperman, Bethesda
Bryan Hunt
Centreville
Gabrielle Kaufman
RSM, Gaithersburg
Sam Klausner
Klausner & Company, Arlington
Robert Kopera
Aprio, Rockville
Howard Kramer
KWC, Alexandria
Jaime K. Lawson, PFS
Baker Tilly, Tysons
Debora E. May, CFP
Councilor Buchanan & Mitchell, Bethesda
Krystal McCants
YHB, Falls Church
Dawn McGruder
McGruder Group, Fairfax
Brad L. Mendelson
Mendelson & Mendelson, Potomac
Brian P. Morrison
CST Group, Reston
Marnette Myers, JD
Prager Metis, Tysons
Jonathan Nichols
Huey & Associates, Herndon
Lauran I. Penn, PFS, CFP
Snyder Cohn, North Bethesda
Walter C. Pennington
Dembo Jones, North Bethesda
John M. Persil
CST Group, Reston
Richard L. Philipson, PFS
PFK O’Connor, Silver Spring
Brian K. Pollack
Lanigan Ryan, Gaithersburg
Carolyn C. Quill, JD
Thompson Greenspon, Fairfax
Matthew J. Radford
CohnReznick, Bethesda
Rebecca Rohe, CFP, PFS
Rohe Tax Services, Clarksburg
Joseph J. Romagnoli
CST Group, Reston
Steve Rose
RoseMcKenna, DC
Pete Ryan
Ryan & Wetmore, Bethesda, Vienna, and Frederick
Erica Schmitz
Schmitz Rini & Associates, Great Falls
Brett Scola, CFP, PFS
RSM, Gaithersburg
Crystal Stewart
DeLeon & Stang, Leesburg
Jennifer Sarajian Stone
Andersen, McLean and DC
Keegan Stroup
Andersen, McLean and DC
Joel C. Susco
Withum, Bethesda
William H. Thomas IV
Withum, Bethesda
Kisha N. Ward, CFP, PFS
K. Ward & Co., DC
Jeffrey Weintraub
Dembo Jones, North Bethesda
Brian Wendroff
Wendroff & Associates, Arlington
Andrew M. Youhas, JD
Youhas & Associates, Arlington