What The Inflation Reduction Act Means For You

The Inflation Reduction Act, which includes expanded or extended tax credits and additional funding for the IRS, was signed into law on August 16, 2022.

How could the Inflation Reduction Act impact you when filing your next tax return?

Below is a simplified summary of how the Inflation Reduction Act may affect you.

Health Care

The Inflation Reduction Act includes:

  • Extension of Affordable Care Act (ACA) funding through 2025. This funding, which was due to expire at the end of 2022, will allow consumers to continue to buy insurance with lower premiums through the Health Insurance Marketplace (also referred to as the Marketplace or the Exchange).
  • Extension of the American Rescue Plan Act (ARPA) temporary exception that allows taxpayers with incomes above 400 percent of the Federal Poverty Level to qualify for the Premium Tax Credit.

Energy Efficient Home Improvement Credit

The Nonbusiness Energy Property Credit was extended through 2032 and renamed the Energy Efficient Home Improvement Credit.

Starting in 2023, the credit will be equal to 30 percent of the costs of all eligible home improvements made during the year. Additionally:

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More Taxes, More Spending, Higher Prices, And An Army of IRS Agents

Washington, D.C.–U.S. Senator Mike Crapo (R-Idaho), Ranking Member of the Senate Finance Committee, delivered remarks on the Democrats’ reckless tax-and-spending bill, outlining what Americans can expect from the mislabeled Inflation Reduction Act of 2022: more taxes, more spending, higher prices, and an army of IRS auditors.

“It’s too many taxes, too much spending, too big of a burden on American people across all income categories.” 

To watch Crapo’s full remarks, click HERE or the image above. 

On the state of the economy:  

The nonpartisan Penn Wharton Budget Model says the “Inflation Reduction Act” will, if anything, raise inflation in the first few years, with a small and insignificant negative effect later in this decade. That same model concludes that there is “low confidence that the legislation will have any impact on inflation.” 

But it does have an impact on all of us and our economy.  

The bill does nothing to bring the economy out of stagnation and recession.  Rather, the “Inflation Reduction Act of 2022” gives us higher taxes, more spending, higher prices, and an army of IRS agents.  

On tax hikes:  

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