The IRS has once again extended the tax filing and payment deadlines in most parts of California due to destruction caused by landslides, mudslides, and severe storms. Now those Californians have until October 16th to file, as opposed to the previously announced May 15th date.

The IRS has extended the fourth quarter 2022 estimated tax payment deadline to October 16th. The 2023 estimated tax payments due on April 18th, June 15th, and September 15th, as well as the quarterly payroll and excise tax returns due on January 31st, April 30th, and July 31st, have also been delayed until October 16th. No contact or extension paperwork is necessary to take advantage of the extended time. If taxpayers receive penalty notifications within the postponed period, they should contact the number provided for the penalty to be waived.

If you boost your home’s energy efficiency, or shift your home to renewable energy sources in 2023, you may qualify for special federal tax credits in 2023. The Inflation Reduction Act of 2022 expanded the tax credits available this year for residential energy efficiency improvements. Eligible homeowners may be able to claim a credit of up to the 30% of the cost of efficiency upgrades like:

• Energy-efficient doors, windows and skylights, as well as new insulation or air sealing
• More efficient air conditioners, water heaters, furnaces or boilers
• Heat pumps
• Biomass stoves or boilers
• Home energy audits by certified inspectors

Credits for biomass appliances and heat pumps could be as high as $2,000, while a maximum credit amount of $1,200 applies for most other energy efficiency improvements. Installations must meet certain criteria in order to qualify for the credits. In addition to these tax savings, well-chosen efficiency upgrades can significantly reduce utility costs. A home energy expert can help you find opportunities to reduce your energy use, while a tax professional can help you maximize the tax benefits of making those improvements.