Electric Vehicle
If there was one of the tax breaks you were probably expecting to see on this list it would have been the ones for electric vehicles, especially since we are talking about climate action here. And the good news is that you can get a pretty hefty sum as tax credits if you choose to go down the route of an electric vehicle (EV). That means that if you buy one second-hand, the credit can go up to $4,000 and if you are getting a new one, it can go up to $7,500.
The best thing about this part is that if you have your eyes on an EV, you do not have to wait until tax season rolls around to take advantage of this benefit. It is transmissible, which means the auto dealer can get it and it can be used at the moment when you decide to buy the car. It is a great benefit when you are buying, in addition to being a good thing for the climate.
However, you have to be careful about the fine print of this tax credit part. There are a few rules which have to do with the modified adjusted gross income (MAGI) depending on if you are a single or joint filer and there are some conditions about how old the car should be to be able to claim this benefit if you are buying second hand. For the new cars, they also have to be of a certain price so it can get a bit tricky. You can read all about these provisions on the U.S. Department of Energy site.
If you are a recent retiree, there is no need to worry about how much your income is going to be taxed. Certain types are not going to be taxed at all, no matter in what tax bracket you find yourself! Read all about these types of retirement income that do not get taxed here!
