Category Archives: Tax Updates

Things to know about the IRS Expansion of the Electric Vehicle Tax Credit

electric vehicle credit, tesla

If you’re in the market for an electric vehicle and you’ve kept your eye on the ball, you’ll have noticed the recently passed Inflation Reduction Act of 2022 includes changes to the credit available for the purchase of an electric vehicle. These changes are quite complex, phasing in over time, but there are some benefits […]

IRS raises mileage rates effective July 1, 2022

business mileage rates

Effective July 1, 2022, the business standard mileage rate for use of an automobile (including vans, pickup trucks and panel trucks) increases from $0.585 to $0.625, and the rate for medical and relocation mileage increases from $0.180 to $0.220. Mileage related to charity is set by law and remains at $0.14 per mile. (Notice 2022-03; Announcement […]

IIJA’s New Digital Asset Reporting Requirement

digital assets

The Infrastructure Investment and Jobs Act of 2021 (IIJA) was signed into law on Nov. 15, 2021. One major provision of the IIJA includes a requirement that cryptocurrency exchanges perform intermediary Form 1099 reporting for cryptocurrency transactions to the IRS. This will will require that cryptocurrency exchanges perform intermediary Form 1099 reporting for cryptocurrency transactions […]

IIAJ Retroactively Terminates Employee Retention Tax Credits

employee retention credit act

The Infrastructure Investment and Jobs Act (IIAJ) (to be signed by President Biden on November 15, 2021), retroactively ended the Employer Retention Tax Credit (ERTC) to apply only through September 30, 2021 (rather than through December 31, 2021), unless the employer is a recovery startup business. As a result of retroactive termination of the ERTC, […]

IRS announces 401(k) limit increases to $20,500

retirement account

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan has been increased from $19,500 to $20,500 beginning with the 2022 calendar year. Additionally, the income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, […]

Advance Child Tax Credit: Should You Opt-Out?

advanced child tax credit

The American Rescue Plan Act (ARPA) included a provision that allows for the IRS to begin making advanced payments of the Child Tax Credit next month. This credit, up to $3,600 per child under the age of 6 and $3,000 per children ages 6 to 17, is typically received as a credit applied against your […]

The American Rescue Plan Act of 2021 – Individual Provisions

american rescue plan

Below we have assembled a brief summary of some of the individual taxpayer provisions of the American Rescue Plan Act of 2021 (ARPA), passed on March 11, 2021. A Third Round of Stimulus Recovery rebate credits (stimulus checks). ARPA provides a third round of nontaxable stimulus checks directly payable to individuals. These payments are structured […]

The American Rescue Act of 2021 – Business Provisions

business tax relief

Below we have assembled a brief summary of some of the business taxpayer provisions of the American Rescue Plan Act of 2021 (ARPA), passed on March 11, 2021. Extension of the paid sick and expanded family and medical leave tax credits Payroll tax credits. Paid sick leave and family leave credits are extended to apply […]

ARPA’S Enhancements to the Premium Tax Credit

health insurance

The premium tax credit (PTC) is a refundable tax credit that assists individuals and families in paying for health insurance obtained through a Marketplace (Healthcare.gov) and was established under the Affordable Care Act (ACA). Recent COVID relief legislation, the 2021 American Rescue Plan Act, (or ARPA) that was just recently passed in March 2021 made […]