Electric Vehicle Credit

Looking for information on Electric Vehicle credits available with the IRS. Use this link to the IRS website on a complete list of qualified vehicles and available credits. The IRS link: https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

2021 TAX UPDATES AND REMINDERS

Majority of taxpayers will qualify for the Standard Deductions- $25,100 couples, $12,550 singles, $18,800 Head of Households. Filing Requirements:

 IRSIllinois
Single$12,550 ($1,700 more for 65 plus)$2,375
Married Filing Jointly$25,100 ($1,350 more for each spouse 65 or older)$2,375 each family member
Married Filing Separately$12,550 ($1,350 more 65 or older)$2,375
Head of Household$18,800 ($1,700 more for 65 plus)$2,375 each family member
Dependent Child File Own TaxEarned Income > $12,550, or Unearned Income + $350 > $1,100$2,375
   

Charitable contributions without itemizing is allowed up to $300(All Others) and $600 for MFJ.

Earned Income Tax Credit: No maximum age limit. Minimum age 19 (except certain fulltime students). Workers investment income limit increased to $10,000.

College Life-time Learning Credit: Income phase have increased. $80,000- $90,000 (S); $160,000-$180,000 (MFJ)

Unemployment compensation: Taxable for 2021

Long-term Capital Gains: Income Thresholds have increased for each Capital Gains tax rate. Modified Adjusted Gross Income of $200,000 (Others) and $250,001(MFJ) subject to 3.8% surtax.

Child Tax Credit: $3,600 /dependent child 5 years old and under; $3000/ dependent child 6 years old to 17 years old. These amounts are affected by the Advanced Child Tax Credit that was received From July 2021 to December 2021.

Advanced Child Tax Credit: Letter 6419 from IRS will be mailed out in January 2022 for reporting requirements.

Mileage Rates 2021:  Business Miles $0.56/mile   Medical Miles $0.16/mile

Mileage Rates 2022: Business Miles $0.585/mile Medical Miles $0.18/mile

Retirement Changes

For Individuals: RMDs are no longer suspended for 2021.

Retirement plan early distributions: Reminded for those who split the distributions to be claimed over three years; that this year the second 1/3 amount is to be reported.  If the repayment was chosen, the amount that was repaid in 2021 needs to be reported.

For Business

Net operating loss (NOL): Limit has increased $250,000 (Others) and $500,000 (MFJ). Losses incurred between 1/1/2021 to 12/31/2026.