American Tax Service

Helping Americans File Their Taxes

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FAQs

How much can I save with a tax credit for an electric vehicle?

The tax credit for an electric vehicle can save you up to $7,500. The credit is available for both new and used electric vehicles, and it is applied to the purchase price of the vehicle. The credit is not available for leased vehicles. The credit is available for vehicles purchased after December 31, 2009.

Who benefits from the tax credit?

The tax credit is a benefit for those who are able to claim it. The tax credit can be used to reduce the amount of taxes that a person owes. The tax credit can also be used to increase the amount of money that a person gets back from the government. The tax credit can be used by individuals, families, and businesses.
What are the drawbacks of a tax credit electric vehicle?
There are a few potential drawbacks to tax credit electric vehicles. First, the tax credit may not be large enough to offset the higher purchase price of an electric vehicle. Second, electric vehicles may not have the same range as gasoline-powered vehicles, which could limit their usefulness for long-distance travel. Finally, electric vehicles may require more maintenance than gasoline-powered vehicles, which could add to the cost of ownership.
Where do I go to get more information on the tax credit?
There is no one-size-fits-all answer to this question, as the best place to get more information on the tax credit will vary depending on your specific situation. However, some good places to start include the Internal Revenue Service (IRS) website, your state’s tax agency website, and/or TurboTax.

1. What is a tax credit electric vehicle?

2. What are the benefits of a tax credit electric vehicle?

3. What are the drawbacks of a tax credit electric vehicle?

There are a few potential drawbacks to tax credit electric vehicles. First, the tax credit may not be large enough to offset the higher purchase price of an electric vehicle. Second, electric vehicles may not have the same range as gasoline-powered vehicles, which could limit their usefulness for long-distance travel. Finally, electric vehicles may require more maintenance than gasoline-powered vehicles, which could add to the cost of ownership.

4. What is the range of a tax credit electric vehicle?

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What is Capital Gains Partial Exclusion for Home Sale?

What is the Capital Gains Exclusion?

The capital gains exclusion is an IRS tax provision that allows you to exclude a certain amount of your capital gains from your taxable income. For example, if you have a capital gain of $10,000, you can exclude $3,000 of it from your taxable income.

Capital gain on a home sale is the difference between the selling price of your home and the original purchase price, plus any improvements you made to the home. The capital gains tax on your home can have a big effect on how much profit you ultimately bring in from selling your home and/or property.

There are some instances where you may not meet all the tests, but you may be eligible for a partial tax break. If you sell your home due to special or unforeseen circumstances, your tax preparer can talk to you about a capital gains partial exclusion for a home sale. These instances would be such as unemployment or a change in your health.

Capital Gains Partial Exclusion for Home Sale

This figure is calculated as a fraction of the time that you would have met the two-year test. Let’s say you lost your job and sold your home after only being in it a year and three months.

You’ve lived in the residence for 15 of 24 months, or 15/24, or 0.625 months. For a single person, multiply the full exclusion amount of $250,000 by 0.625, and you’d be eligible to claim a capital gains exclusion up to $156,250.

Additional Rules for Special Circumstances

There have been a few changes in regards to special circumstances as well. These changes allow for military personnel and surviving spouses.

Military Personnel Special Circumstances Changes

In 2003, the law changed to allow for special considerations for military personnel. They are often redeployed, and it makes it next to impossible to meet the residency requirement. These soldiers then owe taxes when they sell their homes.

Under the new law, military personnel have up to 10 years to sell their home, allowing for the full exclusion. This is applicable if they have to move due to service commitments.

Surviving Spouse Special Circumstances Changes

In 2008, another law was passed regarding the death of a spouse. If the surviving spouse sells their home, it falls under a special consideration.

A previous law stated that a widow or widower had to sell their home the same year their spouse died. Under the new law, the surviving spouse now has up to two years to sell their home. They would be excluded up to $500,000 in gains on the home sale.

How to Claim a Capital Gains Partial Exclusion on Your Home Sale

Keep in mind, if you file online, they will ask you the correct questions to let you know how to claim capital gains deductions you qualify for and guarantee you will receive the largest refund ever.

Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail. You can also use their free tax refund estimator to see how much of a refund you can expect.

Summing It All Up

The bottom line is that you can sell your home and still be eligible for the exclusion of gains. You’ll not always benefit from a full capital gains home exclusion so that partial exclusion may be an option. Obviously, timing is of the essence when selling your home, so before you do so, lay all your cards out on the table for your tax preparer.

How to File Taxes Online Using TurboTax

When you file with TurboTax Online Online they will search over 350 tax deductions and credits to find every tax break you qualify for so you get your maximum refund.

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Tax Credits for Electric Cars

Electric vehicle tax credits can be highly valuable, but there are a lot of confusing rules regarding how they work. This guide will show you what you need to know about tax credits on plug-in electric vehicles. It will also answer some of the most common questions people have.

How Much are Electric Vehicle Tax Credits?

electric car and vehicle tax creditAll-electric and plug-in hybrid vehicles bought new in or after 2010 may be eligible for a $7,500 federal income tax credit.
The amount of the credit will vary depending on the capacity of the battery used to power the car.
State and municipal tax breaks may also be available.

If you purchased a Nissan Leaf and your tax bill was $5,000, that’s all you get at the end of the year. You’re not going to get the other $2,500 as part of a refund. Furthermore, if part of the credit is unused, you can’t carry it over to the following year.

This credit only applies to purchases of a vehicle. If you happen to lease the vehicle, the manufacturer gets to take advantage of the tax credit instead. Some manufacturers will lower your monthly payment to take the credit into account, but they’re not obligated to do this.

The size of the battery in the car is one of the most essential criteria in determining how beneficial it is to claim the electric car credit. For example, the Toyota Prius Prime has a smaller battery, and it’s a hybrid, so you can only get a maximum of $4,502 from purchasing this vehicle.

How Much is the Electric Vehicle Tax Credit for a 2021 Tesla?

The Clean Energy Act for America would benefit Tesla by allowing most Tesla vehicles to qualify for an $8,000 (House version) or $10,000 (Senate version) refundable EV, electric vehicle tax credit while discouraging Chinese EVs from entering the US market.

Tesla, on the other hand, does not utilize unionized workers. Therefore it would be ineligible for the extra $2,500 (Senate version) or $4,500 (House version) credit that corporations like Ford and GM would get.

To help you understand how much each vehicle is worth, look at the chart below:

What Vehicles Currently Qualify for the Federal Credit?

Here are some popular models:

Electric Vehicles Federal Tax Credit
BMW i3 $7,500
Chevrolet Bolt $7,500 (1/1/19-3/31/19) ($3,750, 4/1/19-9/30/19. $1,875, 10/1/19-3/31/20)
Fiat 500e $7,500
Ford Focus Electric $7,500
Hyundai Ioniq Electric $7,500
Kia Soul EV $7,500
Mercedes-Benz B-Class EV $7,500
Nissan Leaf $7,500
Tesla Model 3 $3,750 (1/1/19-6/30/19) ($1,875, 7/1/19-12/31/19)
Tesla Model S $3,750 (1/1/19-6/30/19) ($1,875, 7/1/19-12/31/19)
Tesla Model X $3,750 (1/1/19-6/30/19) ($1,875, 7/1/19-12/31/19)
Volkswagen e-Golf $7,500
Plug-In Hybrids Federal Tax Credit
Audi A3 e-tron $4,205
BMW i3 with range extender $7,500
BMW i8 $3,793
Chevrolet Volt $7,500 (1/1/19-3/31/19) ($3,750, 4/1/19-9/30/19. $1,875, 10/1/19-3/31/20)
Chrysler Pacifica $7,500
Ford C-Max Energi $4,007
Ford Fusion Energi $4,007
Honda Clarity Plug-In Hybrid $7,500
Hyundai Ioniq Plug-In Hybrid $4,543
Hyundai Sonata Plug-In Hybrid $4,919
Kia Optima Plug-In $4,919
Mini Countryman S E All4 $4,001
Toyota Prius Prime $4,502
Volvo XC90 T8 $4,585

The US Department of Energy maintains the entire list. You can sort by vehicle type or manufacturer.

Are There Any Terms and Conditions Associated With the EV Tax Credit?

There are additional rules involving EV tax credits. As well as the rule on how much you can get back from the Federal government, there are a few other things you must take into account:

  • The tax credit is awarded to the registered owner of the vehicle, which is why if you’re leasing, you can’t claim the credit. Instead, try to find a manufacturer that will factor the credit into your monthly repayments.
  • You can’t claim the credit if you’re buying an electric vehicle to resell it. However, this is almost impossible to prove, so plenty of people have claimed the credit anyway.
  • The vehicle’s primary purpose must be for driving within the US. In other words, if you live in Mexico, you can’t just buy in the US and immediately take it to Mexico, at least not for the first year.
  • Only cars built by qualified manufacturers are eligible for full credit.
  • Battery electric vehicles and plug-in hybrids must have battery packs that possess at least 4 kWh of energy storage. They must also be capable of being recharged from an external power outlet.
  • Manufacturers don’t have to certify their vehicles to the IRS that they meet the credit requirements. You can generally rely on manufacturers and their word as to whether a car is eligible. This also applies to electric motorcycles, three-wheel EVs, and other similar vehicles.
  • Please take note that the IRS is well within its rights to reject a request for a tax credit.
  • The car must have a qualified plug-in electric drive motor.

Do the Electric Car Tax Credits Expire?

The government has already begun to phase out electric vehicle tax credits. This is because sales volume is increasing, and they were introduced to encourage this industry.

There’s no set date for when electric vehicle tax credits are due to expire. It depends on the manufacturer. This arises when a manufacturer sells 200,000 qualifying vehicles. Tesla was the first manufacturer to reach this limit back in July 2018.

That’s why from January 1st to June 30th, 2019, the tax credit has decreased by $3,750. From July 1st until the end of the year, the credit is only worth $1,875. From 2020, you won’t be able to claim tax credits on a Tesla.

General Motors became the second manufacturer to hit this milestone in the final financial quarter of 2018. From April 2019, qualifying vehicles are only worth $3,750 in tax credits. Then, from October 2019 to March 2020, the credit drops to $1,875. After that, the credit phases out completely.

Nissan is expected to be the third manufacturer to hit the limit, but as of this writing, it’s still 70,000 sales away from this. However, analysts expect sales to pick up soon.

Can You Refuse to Take Electric Vehicle Tax Credits?

This is a common question from people who want to pass the credit to someone else, such as if the car is used as a loan or test car.

The answer is you can’t pass electric vehicle tax credits to others. Even if the original owner didn’t claim the credit, the new owner can’t claim the credit.

This is especially important to know about if you plan on buying a used car. You may find that purchasing a new model is worth the additional cost because you’ll get more back from the tax credit.

Are There Any Expired Programs?

Hybrids and clean-diesel cars used to qualify for tax credits, but these were discontinued in December 2010. In addition, models like the Toyota Prius and the Hyundai Sonata Hybrid don’t have batteries that can be charged from an external source, so they’re no longer relevant for electric vehicle incentives.

Are There Any State Programs I Can Take Advantage Of?

Do remember that the Federal government is not the only body you can claim a tax credit from. There are dozens of programs run by states and even regions that can offer tax credits on electric cars and other vehicles that take advantage of alternative fuels.

Many states have multiple programs, but the problem is most of them apply only to businesses. A lot of credits are in the form of exemptions, such as inspections and fees. Some programs even offer access to carpool lanes and regional free or reduced parking.

Retail buyers do have some options, though. They can claim rebates, tax credits, and reductions on vehicle taxes by purchasing a qualifying vehicle.

California is one such state that does this. If you buy or lease a new car, like the Chevrolet Bolt or the Jaguar I-Pace, you can receive a rebate of $2,500. These programs are in addition to the Federal tax credit. So, Californians can shave off up to $10,000 off the cost of a new model.

On the other hand, Plug-in hybrids work a little differently because their batteries are smaller, and they burn some form of petroleum-based fuel most of the time. Cars like the Chevrolet Volt are only eligible for $1,500 rebates in California.

It would help if you looked up Plugin America for more information. They provide a map of the country and all the different plug-in car rebates, credits, and deductions. The Department of Energy also offers a similar resource.

Before you shop, look up what you may be entitled to. Unfortunately, many states have either ended or will soon end their programs. For example, Georgia ended its rebate program back in July 2015.

What about Fuel Cell Cars?

If you purchased a fuel cell car after January 1st, 2017, you’re no longer able to claim Federal tax credits on these cars. Those who bought before were able to get a Federal tax credit of $4,000, in addition to credits ranging from $1,000 to $4,000. After that, it largely depended on the fuel efficiency rating of the vehicle.

Some states still have these programs. For example, California continues to offer a $5,000 rebate on the Toyota Mirai.

How to Claim the Electric Car Tax Credit

Online tax software asks you simple questions to fill in the proper forms and helps you claim every electric car tax credit and deduction that you qualify for, and you will get the largest refund possible.

You never have to know the tax laws or rules during the filing process!

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How Can I Get  My W2 Form Online?

Employers are obligated to send out W-2 Forms by January 31st, or the next business day if it falls on the weekend or a public holiday.

But that doesn’t mean you have to receive it by that date. This can be highly frustrating if you just want to file your taxes and get the whole process over and done with.

w2 form online

That’s why services the W-2 Finder were created. You can get an electronic copy free of charge, so that you can get started on your taxes as early as possible.

You’ll no longer have to wait for the mail or an employer who sends out W-2 forms at the last possible moment.

So, here’s how you can get your W-2 Form early.

How Can I Get My W-2 Form Right Now?

You can use the W2 finder to search for your employer’s name, or their Federal Employer Identification Number (FEIN). Then, select it from the list that comes up.

Once you select your employer, you’ll be given a set of instructions to follow. Go through all the steps, and the system will import your W-2 Form online so you can start filing your taxes right away.

What if I Can’t Find My W-2?

It’s easy to search the online database to find out where your W-2 is. But if you see your employer listed and your W-2 isn’t there yet, don’t panic. The database is updated on a weekly basis.

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When Can You File Taxes?

filing taxes online

2021 is coming to an end, and you may be wondering when you can file taxes in 2022?

While you may be looking forward to the holiday season, keep in mind that tax season officially kicks off soon after it ends.

So, When Does Tax Season Start in 2022

The Internal Revenue Service has set the opening day for the 2021, 2022 filing season as Monday, Jan. 24, 2022. That’s when the IRS will start accepting and processing 2021 tax year returns.

Start Filing Your Taxes Early With an Online W-2 Form

In order to begin filing your taxes, you will need a W-2 form. These must come from every employer you had during the last tax year. In addition, for freelancers, you will need to have 1099 forms to file your taxes.

The rules for employers are strict. Any documents relating to tax filing must be submitted and postmarked by January 31st. This means most employees can start filing their taxes before the 1st of February.

However, if you work for someone and you get your W-2 early online, you can start filing taxes immediately.

But don’t worry, you have time. The deadline for filing your taxes for the tax year is usually April 15th.

What Happens if I Didn’t Get My Form?

If you haven’t received your W-2 by the middle of February, you need to contact your employer. According to IRS guidelines, this is your responsibility.

Only when this strategy doesn’t work should you call the IRS at 800-829-1040. You’ll need to have the following information during this call:

Personal Identifying Information – This includes things like your name, address, and social security number.

Employer Details – You’ll need to tell the IRS who your employer is, their address, and their phone number.

Working Dates – Provide information on how long you worked there, including specific dates.

Financial Information – The IRS will also ask for an estimate of how much you were paid and how much of your salary was withheld for tax purposes.

What if I Still Don’t Have My W-2?

In the event you’re unable to obtain your W-2 by the tax filing deadline, you should use Form 4852.

Form 4852 is a substitute for W-2 forms. Again, you’ll need to estimate how much you were paid and how much tax was withheld to the best of your ability.

However, refunds will typically take longer as the IRS will manually verify the numbers you’ve provided.

It’s also possible to use IRS Free File and file for a six-month extension.

If you happen to file Form 4852 and then your W-2 arrives, you’ll need to use Form 1040X and file an amended tax return.

After filing Form 1040X, you should receive any tax refund you’re entitled to within the standard 21 days.

You Can Start Online Tax Filing at Any Time

When you file your taxes online, you are guided step by step with simple, plain-English questions and apply the applicable tax laws in the background.

We also do the math and fill in all the correct tax forms. We will even recommend the best choices for you when it comes to filing status, deductions and credits, and other areas that affect your taxes.

Plus, we check your return for errors and tell you how to fix them. And if you’re ever unsure of an answer or need some expert advice on your taxes, you can talk one-on-one with one of our highly-skilled tax professionals for free.