A few tax credits for the 2023 Tax Year

Your Tax Preparer


March 2, 2024

Taxpayers with one or more qualifying children may be able to claim a tax credit of up to $2,000 per qualifying child. The childcare credit is generally a nonrefundable credit that is limited to regular tax liability plus alternative minimum tax liability. However, a portion of the credit is refundable for certain taxpayers. The refundable portion of the additional tax credit for any qualifying child cannot exceed $1,500.

D. David Hebebrand CPA.

The additional childcare credit is the smaller of:

1) The amount of the childcare credit remaining after reducing the regular tax or the alternative minimum tax to zero or

2) 15% of the taxpayers earned income more than $2,500.

A $500 credit is allowed for each dependent of the taxpayer other than a qualifying child. The nonrefundable credit applies to a child under age 19, a full-time student under the age of 24, a disabled child of any age or other qualifying relatives.

There is an earned income credit for certain taxpayers within the earned income range.

See income range chart below.

There are several energy credits for the tax year. The nonrefundable credit on solar systems is at 30% of the total costs, subject to limitations. There are several smaller credits for items such an electric water heaters and high efficiency air conditioners and exterior windows and skylights.

The office of Moats & Hebebrand CPAs makes a concerted effort to stay on top of the changes in the tax laws, so you don't have to.

Let us prepare your 2023 tax returns so you know they are done right! We are open all year to assist with tax planning and to take care of our clients.

Moats and Hebebrand CPAs is located at 20231 Valley Blvd., Ste. E, Tehachapi, or call (661) 822-1750.


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