January 2022 Q & A
Q: Are there tax credits available for my small delivery business if I purchase electric vehicles?
A: A tax credit of up to $7,500 per vehicle is available when you purchase an electric car from a manufacturer that has sold less than 200,000 electric automobiles. Tesla and General Motors have already crossed that threshold, so a tax credit is not available for their vehicles. Additional requirements for the tax credit are that the car must be purchased new from the manufacturer, and you must use it primarily in the United States.
Q: The Social Security Number on my W-2 is incorrect. What should I do?
A: January is the time of year when informational tax forms like W-2s, 1099s and 1098s begin appearing in mailboxes. Be sure to check them carefully for accuracy. And if you discover a mistake, contact the sender immediately. They’ll need to issue a corrected form. If it’s an incorrect W-2, your employer will send you a W-2c. And for 1099s and 1098s, they’ll check the box next to the word corrected at the top of the form. Always use information from the updated document on your tax return because the IRS will flag anything that doesn’t match, potentially creating delays or creating an unexpected tax bill.