New Tax Law Comparison Summary - The program includes a summary of the new tax provisions affecting 2023 tax returns, comparing 2023 to both 2022 and 2021. The Tax Law Comparison can be viewed by selecting the Help menu at the top of the the program, then Tax Provisions Comparison.
Standard deduction amount increased - For 2023, the standard deduction amount has been increased for all filers. The amounts are:
• Single or Married filing separately—$13,850.
• Married filing jointly or Qualifying surviving spouse—$27,700.
• Head of Household - 20,800.
Additional child tax credit - The amount increased. The maximum additional child tax credit amount has increased to $1,600 for each qualifying child.
New clean vehicle credit - The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the clean vehicle credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is still reported on Form 8936 and Schedule 3, line 6f.
Alternative motor vehicle credit - The alternative motor vehicle credit has expired.
Schedule 1 - A new line has been added to include Wages earned while incarcerated to other income.
Schedule 3 - This year Schedule 3 has new lines.
- Line 5 has been separated into lines 5a and 5b so that the residential clean energy credit and the energy efficient home improvement credit reported on Form 5695 each have their own line.
- New line 6m was added to report the credit for previously owned clean vehicles from Form 8936.
- Line 13c will be used to report the elective payment election amount from
Form 3800.
Form 3800 - The form has been redesigned to support the provisions of the Inflation Reduction Act of 2022.
- New Form 7213 will be used to report the credit for production from advanced nuclear power facilities reported on part III line 1cc. The new zero-emission nuclear power production credit will be reported on Part III line 1u. See the instructions for Form 7213 for more information.
- New Form 7210, starting with tax year 2023, the clean hydrogen production credit will be claimed on Form 7210 and reported on Part III, line 1g. See the instructions for Form 7210 for more information.
- New line added to the program for Form 8904, Credit for Oil and Gas Production from Marginal Wells, line 8, or from the applicable line of your Schedule K-1. See the Instructions for Form 8904 for
more information.
Schedule C - Changes for Schedule C For 2023 include:
- Schedule C (Form 1040) is available to be filed with Form 1040-SS, if applicable.
- The business meal deduction reverts back to the previous 50% allowable deduction beginning January 1, 2023.
- The energy efficient commercial buildings deduction is now reported on new line 27b.
Bonus depreciation - The bonus depreciation deduction under section 168(k)
begins its phaseout in 2023 with a reduction of the applicable limit from 100% to 80%.
Standard mileage - The standard mileage rate for 2023 is 65.5 cents per mile. The temporary 100% deduction for food or beverages provided by a restaurant has expired.