If you purchased an electric vehicle recharging station for your home, then you can get a Federal tax credit of 30% of the cost. The maximum credit is $1,000. This benefit is available on your 2018-2021 individual tax returns. If you didn’t take this on a previously-filed-return, then ask us to amend that return to take this credit.
A credit, up to $500, is available for you on your tax return if you purchased an energy-efficient window, exterior door, HVAC system, hot water heater, or insulation during the year. Ask us for details if you think you qualify.
Eligible employers are allowed a credit of 12.5% of the amount of wages paid to employees who are on family and medical leave if the employer pays at least 50% of the wages normally paid to the employee while that employee is on leave. So, if you have a salaried-employee who has a new child or a sick spouse, and continue their salary during their absence, the government wants to give you money. There are plan-rules that need to be followed before taking the credit – ask us for guidance.
An employer may contribute up to $5,250 annually toward an employee’s student loans, and the payment will be excluded from the employee’s W-2 wages. While employers can’t discriminate in favor of highly-compensated employees when providing this benefit, they can provide it only to certain level or geographies of employees if desired. Utilizing this benefit will save the employee income tax and the employer FICA tax. Do you have any employees with student loans? Instead of giving them a raise, tell them that you will now pay their student loans for them – effectively giving that employee a raise without causing the employee to pay tax on that raise.
If you had a profitable self-employed business and couldn’t work in 2021 because you had Covid, had a family member who had Covid, had to quarantine, had a family member who had to quarantine, or had to take care of a child whose school or daycare was shut-down due to Covid, then the government will effectively give you, in the form of a tax-credit, the amount that you would have earned during the days that you couldn’t work. This is a complicated tax calculation with pages and pages of rules and limitations, but is definitely something that you shouldn’t overlook when preparing your 2021 tax return.