Tax law can be complex. There's much to know to be sure you're doing all you can to get what you deserve. Here are some tips and possible deductions to get you started. WHEN IN DOUBT, BRING IT IN!
When the sum of your itemized deductions is less than the standard deduction it does not make sense to go through the trouble of totalling up all your expenses for itemizing. Below is a list of the standard deductions based on filing status for 2022. Please make an estimate of your expenses before calculating or bringing in your itemized deductions.*
2022 Standard Deduction
Single or Married Filing Separately $12,950
Married Filing Jointly or Qualifying Widow(er) $25,900
Head of Household $19,400
*Note: Charitable deductions still qualify for a deduction even with standard deduction.
Donations and out-of-pocket expenses paid to qualified charitable organizations. See our Charitable Deductions page for more information.
Arizona allows 100% of medical expenses when you itemize deductions. For a federal tax deduction you must have medical expenses exceeding 7.5% of your adjusted gross income. Qualified medical expenses include mileage, certain insurance premiums, vision and dental care, copays for prescription drugs, medical equipment. See our Medical Deductions page for more examples.
State and local taxes paid, sales tax paid on all vehicles and homes, personal property tax, foreign taxes (not foreign real estate taxes), real estate/property tax, vehicle license tax on auto registration (go to www.servicearizona.com) There is a cap on the aggregate of these deductions; meaning, all state and local taxes, income, and property taxes together may not exceed $10,000 ($5,000 for married taxpayers filing separately).
Form 1098 home mortgage interest and points paid on qualified residence. If you refinanced bring in settlement statements. Mortgage interest paid to another. Seller financed or recreational vehicles: need name and address, if paid to an individual need a social security number or EIN. Investment interest expense. For tax years 2020 through 2025, there is no deduction available for interest on home equity indebtedness.
Points paid on a home mortgage are usually deductible as interest.
Expenses incurred by teachers, instructors, counselors, principals and aides for educating students K-12, up to $250.
Beginning in 2018, the moving expense deduction is only available to certain military personnel.
This list is far from exhaustive.
Call today to set up a time to discuss your specific situation and needs.
Bring documentation for all sources of income.
If you’re not sure whether income is taxable, bring it in and we’ll discuss it.
W-2s for wages earned from employers
W-2s for disability income
W-2Gs for gambling winnings
1099 for retirement income, including pensions, IRAs and annuities
1099-Int for interest earned from investments and bank accounts
1099-Div for dividends earned on investments
1099-G for 2012 state tax refunds or unemployment
1099-SSA for Social Security benefits
1099-Misc for business/rental/royalties/etc.
Include all other income even if you did not receive a 1099-Misc
1099-B for stock sales and broker accounts with date of purchase and cost basis
Bad Debt (rules apply)
Consolidated 1099s from brokerage accounts including amended or substitute 1099s
1099-S for sale of real estate, including settlement statement
Any income from sales of business/rental/investment assets
K-1s for investments in partnerships, S-corporations, trusts, royalties
Rental Real Estate Income
Total of all alimony received
Forms 1099-C and 1099-A cancellation of debt
Any other income!
The residential clean energy property credit is a 30-percent credit for certain qualified expenditures made by a taxpayer for residential energy efficient property. The Inflation Reduction Act (IRA) extended the residential clean energy property credit through 2034, modified the applicable credit percentage rates, and added battery storage technology as an eligible expenditure. The credit applies for property placed in service after December 31, 2021, and before January 1, 2033.
Through December 31, 2022, the energy efficient home improvement credit is a $500 lifetime credit.
This energy efficient home improvement credit is limited as follows.
Beginning January 1, 2023, the amount of the credit is equal to 30% of the sum of amounts paid
by the taxpayer for certain qualified expenditures, including (1) qualified energy efficiency improvements installed during the year, (2) residential energy property expenditures during the year, and (3) home energy audits during the year.
To qualify, a vehicle must:
The sale qualifies only if:
In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed:
MSRP is the retail price of the automobile suggested by the manufacturer, including options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay.
Child and Dependent Care Credit
Child/Additional Child Tax Credit
Earned Income Tax Credit
Retirement Savers Credit
Residential Energy Efficient Property
Visit our our link at https://aztaxcreditfunds.com/toogoodstax ;
here you can find qualifying organizations, make a donation, and have your summary statement sent to us all from one easy-to-use website. 100% of the donations pass through to the organization you choose.
TOOGOOD'S TAX AND ACCOUNTING, PLLC
595 SOUTH MAIN STREET
PO BOX 2999
FLORENCE, AZ 85132