2020 – 09/29 New vehicles are now available for a tax break. On its website, the IRS has added several 2021 model year Honda and Volvo vehicles to the list of vehicles eligible for the plug-in electric drive motor vehicle tax credit. The tax code provides a credit to the purchaser of a qualified plug-in electric drive motor vehicle, including passenger vehicles and light trucks. For qualifying vehicles acquired after Dec. 31, 2009, the credit is equal to $2,500 plus an additional amount, based on battery capacity, that cannot exceed $5,000. For more information about the credit and a list of qualifying vehicles, visit:
Similar Posts
Last Day to File
2020 – 08/21 Did you ask for an extension for your 2019 tax return this year? If so, keep in mind that Oct. 15, 2020 is the last day to file for most people who requested an extension. You can file your return any time before that date if you have all your required tax…
IRS Guidance: Payroll Tax Deferral
2020 – 09/08 There are concerns NOT covered by the recent IRS guidance on the optional payroll tax deferral. The IRS issued Notice 2020-65 regarding the postponement of withholding and remittance of the employee’s share of Social Security taxes as permitted in an Aug. 8 executive action from President Trump. Only employees under a certain…
Who is a Dependent?
2020 – 09/17 How does the tax code define “dependent” for tax purposes? The IRS has finalized the definition based on changes brought by the Tax Cuts and Jobs Act (TCJA) for tax years 2018 through 2025. The definition of dependent includes a qualifying relative who meets two tests. The “income test” is met if…
Social Security and Medicare Taxes
2020 – 08/10 In an executive order, President Trump directed that Social Security and Medicare taxes be deferred from Sept. 1 through Dec. 31, 2020. There are still many questions that are unanswered about how this will work and there may be legal challenges. At this point, the taxes are just deferred, meaning they will…
Payroll Associations Express Concerns
2020 – 08/25 In a letter to the U.S. Treasury and the IRS, two payroll associations weigh in on the payroll tax deferral. The groups expressed concern that employers don’t have enough time to implement it. On Aug. 8, President Trump issued an executive memorandum to defer the employee’s portion of Social Security tax from…
Helping employees understand their health care accounts
2020 – 08/26 Many businesses now offer, as part of their health care benefits, various types of accounts that reimburse employees for medical expenses on a tax-advantaged basis. These include health Flexible Spending Accounts (FSAs), Health Reimbursement Arrangement (HRAs) and Health Savings Account (HSAs, which are usually offered in conjunction with a high-deductible health plan)….
