The Inflation Reduction Act is a significant change if you bought an eclectic car, had home improvements, or planned to upgrade your appliances in 2023. You may be entitled to a non-refundable tax credit for all those events. You can think of a non-refundable credit as a discount on your taxes. Essentially, it reduces the amount of taxes you must pay.
Without going into detail, this law changes the rules of what does and does not qualify for the credit. For this year, bring more receipts than usual. Bring anything related to a new car purchase or home improvement and show it to your preparer. For 2023, talk to your tax preparer before buying new appliances or getting home renovations. You can sometimes save money by being strategic. Again, the rules are specific and pedantic, so give a quick call to see if you already qualify or if a few minor changes to the job will get you a bigger tax credit.