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Tax Alerts
June 22, 2021
Tax Briefing(s)

2019 MOTOR FUEL INCOME TAX CREDIT - Use this form determine if you are eligible to claim this credit on your 2019 SC tax return.  The first page has a flowchart to help you determine your eligility.  Page 2 is the Form I-385.  If married filing a joint return, complete a separate form for each of you.  Pages 3-5 contain instructions and helpful information to address most questions and circumstances such as selling, trading in, or a total loss of a vehicle during the year.  Please open this file and then either save it to your computer.  After completing the form, wither email it to us or print it and include with the other tax documentation that you bring to us.  Please complete the YES/NO questions on page 1 and then proceed to page 2 and complete every field for each vehicle a credit is to be claimed.  All fields must be completed. 


This schedule is not all-inclusive, but it covers most of the common deductions and credits.  The General Information section helps us with the basic information needed for all returns.  There is also a section to summarize your rental and self-employment business income and related expenses.


2020 MOTOR FUEL INCOME TAX CREDIT - Use this form determine if you are eligible to claim this credit on your 2020 SC tax return.  The first page has a flowchart to help you determine your eligility.  Page 2 is the Form I-185.  If married filing a joint return, complete a separate form for taxpayer and spouse.  Pages 3-5 contain instructions and helpful information to address most questions and circumstances such as selling, trading in, or a total loss of a vehicle during the year.  Please print this form out and complete it completely.  The required information is noted with "---->" in the left margin.  All fields must be completed.  Each SC resident may claim the credit for up to 2 eligible vehicles.


This annual newsletter briefly update and other information we feel necessary to share with you.  We focus this year on some of the primary the tax effects of COVID-19--The Economic Impact (Stimulus Payments, unemployment compensation, special charitable contribution deduction for 2020, required minimum distributions for certain retirement plans.  Also, included is a brief explanation of the SC Refundable Motor Fuel Income Tax Credit that can be claimed on your 2020 returns.  See "SC Form I-385" above for the form referenced in this newsletter.


On April 28, 2021, the White House released details on President Biden’s new $1.8 trillion American Families Plan. The proposal follows the already passed $1.9 trillion American Rescue Plan Act and the recently proposed $2.3 trillion infrastructure-focused American Jobs Plan. The details were released in advance of President Biden’s address to a joint session of Congress.


The IRS announced that it had started issuing refunds to eligible taxpayers who paid taxes on 2020 unemployment compensation that was excluded from taxable income by the recently enacted American Rescue Plan (ARP) (P.L. 117-2).


A safe harbor is available for certain Paycheck Protection Program (PPP) loan recipients who relied on prior IRS guidance and did not deduct eligible business expenses. These taxpayers may elect to deduct the expenses for their first tax year following their 2020 tax year, rather than filing an amended return or administrative adjustment request for 2020.


Individuals may use two special procedures to file returns for 2020 that allow them to receive advance payments of the 2021 child credit and the 2021 Recovery Rebate Credit.


The IRS has provided guidance for employers, plan administrators, and health insurers regarding the new credit available to them for providing continuation health coverage to certain individuals under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) during the COVID-19 (Coronavirus) emergency.


The IRS has reminded employers that under the American Rescue Plan Act of 2021 (ARP) ( P.L. 117-2), small and midsize employers and certain government employers are entitled to claim refundable tax credits that reimburse them for the cost of providing paid sick and family leave to their employees due to COVID-19. This includes leave taken by employees to receive or recover from COVID-19 vaccinations.


The IRS has reminded taxpayers who owe 2020 taxes that there are different ways to pay their taxes online, including payment options for many people who cannot pay in full.


The IRS reminds taxpayers that May includes National Hurricane Preparedness Week and National Wildfire Awareness Month. It urges taxpayers to create or review emergency preparedness plans for surviving natural disasters.


Dependent care assistance benefits carryovers and extended claims period amounts that would have been excluded from income if used during the preceding tax year will remain excludable in tax years ending in 2021 and 2022. In addition, these benefits will not be taken into account in determining the dependent care benefits exclusion limit for the tax years ending in 2021 and 2022.


The Treasury Department has released a statement discussing investment in the IRS and improving tax compliance. 


Michael Jackson’s image and likeness, as well as his interests in two trusts—one trust (NHT II) that held his interest in the Sony/ATV Music Publishing, LLC, and one trust (NHT III) that held Mijac Music—were valued for estate tax purposes.


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