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The American Rescue Plan Act of 2021 introduced pivotal tax credits for paid leave, offering crucial support to individuals and businesses impacted by the ongoing challenges of the COVID-19 pandemic. This article focuses on the specific provisions related to self-employed individuals as outlined by the Internal Revenue Service (IRS). We explore eligibility criteria, qualified amounts, claiming procedures, and provide insights into maximizing these tax benefits.

The IRS offers a clean vehicle tax credit of up to $7,500 for buying a new, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after. The credit amount depends on the battery capacity, the date of delivery, and the critical mineral and battery component requirements of the vehicle. The credit is also subject to income limits and phase-out rules. To claim the credit, you need to file Form 8936 with your tax return and attach the information provided by the seller at the time of sale.

Self-employed individuals in the taxi services sector, including those driving for platforms like Uber, Lyft, and Curb, can unlock valuable tax benefits through the Self-Employment Tax Credit (SETC). This comprehensive guide delves into the intricacies of the SETC, outlining eligibility criteria, qualified amounts, and strategic approaches for maximizing tax savings.

Uncover the essential guide to sidestepping tax filing pitfalls this season. Explore the Forbes article by Cicely Jones on “6 Tax Filing Mistakes To Avoid,” and empower yourself with knowledge to ensure a seamless tax-filing experience. From missed deadlines to the failure to seek professional help, this article dissects key errors to keep you on the path to financial success.

Tax credits can be refundable or nonrefundable. Refundable tax credits can reduce the amount of tax you owe and even increase your tax refund. Nonrefundable tax credits, on the other hand, can only reduce your tax liability to zero. This article explains the difference between refundable and nonrefundable tax credits.

Delve into the intricate world of income tax as we unravel the distinctions between tax deductions, tax credits, and tax refunds. Understand how each concept affects your financial landscape and discover the strategies to optimize your tax situation.

In a significant move, the IRS has announced the waiver of $1 billion in penalty taxes, signaling a favorable start to the 2024 tax season scheduled to commence on January 29. This decision, explored in detail in a recent Fox Business article, brings relief to taxpayers facing penalties and introduces a more lenient approach for the upcoming tax year.

The Internal Revenue Service (IRS) has issued initial guidance to help employers with implementation of pension-linked emergency savings accounts (PLESAs). Authorized under the SECURE 2.0 Act of 2022, PLESAs are individual accounts in defined contribution plans and are designed to permit and encourage employees to save for financial emergencies. Employers can offer PLESAs in plan years beginning after Dec. 31, 2023. This means that, in some cases, eligible employees could have begun contributing to a PLESA as early as Jan. 1, 2024. Subject to certain restrictions, matching contributions are made with respect to PLESA contributions at the same rate as contributions to the linked defined contribution plan.

The Child Tax Credit is a federal tax benefit that provides financial support for American taxpayers with children. For the 2023 tax year, taxpayers may be eligible for a credit of up to $2,000 — and $1,600 of that may be refundable. To qualify, taxpayers and their children must meet certain eligibility criteria that take into account the child’s age, as well as their relationship to the person claiming them. Taxpayers must also meet income thresholds to take full advantage of the benefit because the credit phases out for high earners.

The EV tax credit is a federal incentive that offers up to $7,500 for buying a new, qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after. The credit is nonrefundable, which means it can only reduce your tax liability and not give you a refund. The credit amount depends on the battery capacity, the date of delivery, and the critical mineral and battery component requirements of the vehicle. The credit is also subject to income limits and phase-out rules based on your modified adjusted gross income (AGI) and the manufacturer’s sales volume. To claim the credit, you need to file Form 8936 with your tax return and attach the information provided by the seller at the time of sale