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Plug-In Electric Vehicle Manufacturer Crosses 200,000 Sold Threshold; Tax Credit for Eligible Consumers Begins Phase Down on Apr. 1

Plug-In Electric Vehicle Manufacturer Crosses 200,000 Sold Threshold;
Tax Credit for Eligible Consumers Begins Phase Down on Apr. 1

WASHINGTON – The IRS announced today that General Motors, LLC has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018. This triggers a phase out of the tax credit available for purchasers of new General Motors plug-in electric vehicles beginning Apr. 1, 2019.

Qualifying vehicles by the manufacturer are eligible for a $7,500 credit if acquired before April 1, 2019. Beginning Apr. 1, 2019, the credit will be $3,750 for General Motors’ eligible vehicles. On October 1, 2019, the credit will be reduced to $1,875 for the next two quarters. After March 31, 2020, no credit will be available.

The plug-in electric drive motor vehicle credit was enacted in the Energy Improvement and Extension Act of 2008 and subsequently modified in later law. It provides a credit for eligible passenger vehicles and light trucks. By law, five quarters after reaching the sales threshold, the credit ends for the manufacturer. General Motors vehicles are eligible for some portion of a credit until Apr. 1, 2020.

Spread the word about a tax credit that helps millions of Americans

Spread the word about a tax credit that helps millions of Americans

All individual taxpayers and families should claim tax credits for which they are eligible. Tax credits can not only reduce the amount of taxes owed, but some can result in a tax refund. The earned income tax credit is such a credit. It benefits millions of taxpayers by putting more money in their pockets.

The IRS encourages taxpayers who have claimed the credit to help their friends, family members and neighbors find out about EITC. They can go to IRS.gov/eitc or use the EITC Assistant tool on IRS.gov, available in English and Spanish. Word of mouth is a great way to help people who may be eligible for this credit in 2019 for the first time. People often become eligible for the credit when their family or financial situation changed in the last year.

Based on income, family size and filing status, the maximum amount of EITC for Tax Year 2018 is:

$6,431 with three or more qualifying children
$5,716 with two qualifying children
$3,461 with one qualifying child
$519 with no qualifying children

Every year, millions of taxpayers don’t claim the EITC because they don’t know they’re eligible. Here are some groups the IRS finds often overlook this valuable credit:

American Tribal communities
People living in rural areas
Working grandparents raising grandchildren
Taxpayers with disabilities
Parents of children with disabilities
Active duty military and/or veterans
Healthcare and Hospitality workers

Free tax help from volunteers:

The IRS works with community organizations around the country to offer free tax preparation services. They train volunteers who prepare taxes for people with low and moderate income. These volunteers can help determine if a taxpayer is eligible to claim the EITC. There are two IRS-sponsored programs:

Volunteer Income Tax Assistance: This program, also known as VITA, offers free tax return preparation to eligible taxpayers who generally earn $55,000 or less.
Tax Counseling for the Elderly: TCE is mainly for people age 60 or older but offers service to all taxpayers. The program focuses on tax issues unique to seniors. AARP participates in the TCE program through AARP Tax-Aide.

Affordable Care Act: What Employers with Fewer than 50 Employees Need to Know

As an employer, the number of employees you have during the last calendar year determines which parts of the health care law apply to your organization. If you are an employer with fewer than 50 full-time employees, including full-time equivalent employees, here are three things to know about how the health care law affects you.

Information Reporting

If you offer employer-sponsored self-insured health coverage to your employees, you will use Form 1095-B, Health Coverage Information Return to report information to covered individuals about each person enrolled in coverage. The deadline for filing this form with the IRS is February 28, 2017, or March 31, 2017 if filing electronically. The deadline for furnishing this form to the covered individual is March 2, 2017, which is a 30-day extension from the original due date of January 31.

Tax Credit: You may be eligible for the small business health care tax credit if you meet all of the following conditions. You:

o cover at least 50 percent of employees’ premium costs

o have fewer than 25 full-time equivalent employees

o pay average annual wages per full-time equivalent employee of less than $52,000 in tax year 2016

o purchase coverage through the SHOP Marketplace

Small Business Health Care Tax Credit: Questions and Answers

Federal law gives a tax credit to eligible small employers who provide health care coverage to their employees. Questions and answers provide information on the credit for tax years beginning in 2014.

[Read more…]

Find out if you qualify for the Earned Income Tax Credit

If you earned $53,930 or less last year, you could receive a larger refund if you qualify for the Earned Income Tax Credit (EITC). If you have three or more qualifying children, you could get a maximum credit of up to $6,318. Even if you don’t have children, it could mean up to $510 added to your tax refund.

Unlike most deductions and credits, the EITC is refundable. In other words, if you’re eligible, you may get a refund from the IRS even if you don’t owe tax. This year, more than 25 million eligible workers and families nationwide received about $63 billion in EITC, with an average of more than $2,470.

To find out if you’re eligible, use the EITC Assistant, an online tool available on IRS.gov.

You don’t need to guess about your eligibility — use the EITC Assistant to find out for sure. And, when checking your eligibility for EITC, don’t overlook other tax credits for which you may qualify.

Some refunds held until mid-February

By law, if you claim either the EITC or Additional Child Tax Credit (ACTC), the IRS can’t issue your refund before mid-February. The IRS must hold the entire refund — even the portion not associated with the EITC or ACTC.

The IRS expects the earliest EITC/ACTC related refunds to be available in bank accounts or debit cards starting February 27, 2018, if you chose direct deposit and there are no other issues with your tax return.

You can track the status of your refund with the “Where’s My Refund?” tool available on IRS.gov or the IRS2Go mobile app.

Free Tax Preparation

Free tax preparation help will be available this filing season near you. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals. Free tax preparation sites are generally located at community and neighborhood centers, libraries, schools, shopping malls and other convenient locations across the country.

Plug-In Electric Vehicle Manufacturer Crosses 200,000 Sold Threshold; Tax Credit for Eligible Consumers Begins Phase Down on Apr. 1

Spread the word about a tax credit that helps millions of Americans

Affordable Care Act: What Employers with Fewer than 50 Employees Need to Know

Find out if you qualify for the Earned Income Tax Credit

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