Author Topic: Proposed $4,000 tax credit for travel  (Read 3102 times)

Offline koshergourmetmart

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Proposed $4,000 tax credit for travel
« on: June 12, 2020, 02:55:32 PM »
https://comicbook.com/irl/news/explore-american-tax-credit-plan-would-provide-4-000-tax-break-f/?fbclid=IwAR0zqTSTf17GzDiokqjswWJMVtdavZLbPXpyNvgHkst7fEe5x3h5Jky3An8   If it goes through Americans would be eligible through the end of 2021 for people to get 50 percent of their travel (that takes place at least 50 miles from home) up to $4,000.

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Re: Proposed $4,000 tax credit for travel
« Reply #1 on: June 12, 2020, 04:22:29 PM »
https://comicbook.com/irl/news/explore-american-tax-credit-plan-would-provide-4-000-tax-break-f/?fbclid=IwAR0zqTSTf17GzDiokqjswWJMVtdavZLbPXpyNvgHkst7fEe5x3h5Jky3An8   If it goes through Americans would be eligible through the end of 2021 for people to get 50 percent of their travel (that takes place at least 50 miles from home) up to $4,000.

Impressive. Lawmakers usually go for tax deductions not tax credits so this could definitely be worth something. Alas there are hundreds of stimulus bills floating around Congress and if we're lucky maybe two or three will see the light of day.

Offline AsherO

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Re: Proposed $4,000 tax credit for travel
« Reply #2 on: June 12, 2020, 04:35:52 PM »
Impressive. Lawmakers usually go for tax deductions not tax credits so this could definitely be worth something. Alas there are hundreds of stimulus bills floating around Congress and if we're lucky maybe two or three will see the light of day.

Combine the hundreds of bills into a grand $10T mega-stimulus so all the special interests from each of the bills will get what they want.
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Offline grodnoking

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Re: Proposed $4,000 tax credit for travel
« Reply #3 on: June 12, 2020, 04:58:55 PM »
Combine the hundreds of bills into a grand $10T mega-stimulus so all the special interests from each of the bills will get what they want.
And the American people will get what they don't need. Great.
I'm not who you think I am.

Offline AsherO

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Re: Proposed $4,000 tax credit for travel
« Reply #4 on: June 12, 2020, 05:03:40 PM »
And the American people will get what they don't need. Great.
[/quote

We’ll get what we voted for, not that there’s another option...
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Offline yoni1983

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DANSDEALS TAX CREDIT
« Reply #5 on: June 17, 2020, 11:43:41 AM »
Who knew that @Dan was a political lobbyist?!  ;)  A $4k tax credit for traveling in the US? Might happen as part of the next stimulus package likely to be passed by end of July.

"Explore America" tax credit...s/b renamed "DansDeals Credit"

https://www.forbes.com/sites/suzannerowankelleher/2020/06/13/will-a-4000-tax-credit-for-travel-be-in-the-next-stimulus-package/#1c91732620ff

NOTE (I'm a CPA) - This is NOT law as of now, but it does seem to actually have bi-partisan support and is likely to be passed soon.

Offline davidd75

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Re: DANSDEALS TAX CREDIT
« Reply #6 on: June 17, 2020, 12:07:57 PM »
interesting! but  as I understand minimum expense would be $50 and you would get half of the expense up to $4K?

How would it work if one used hybird points/airline miles/hotel points would they be considered a valid expense?

Offline yoni1983

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Re: DANSDEALS TAX CREDIT
« Reply #7 on: June 17, 2020, 12:11:14 PM »
Just speculating, but my guess is that as long as you can show proof you incurred the expense (ie: via the charge on your credit card statement), you could count it. Of course if the same credit card statement shows a credit for cashing in points for the exact same amount, it would muddy the waters a bit. 

Offline RebTuvia

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Re: DANSDEALS TAX CREDIT
« Reply #8 on: June 17, 2020, 12:15:02 PM »
How will they determine what's "away from home"? Or is it going to include everything travel related including local?

Offline davidd75

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Re: DANSDEALS TAX CREDIT
« Reply #9 on: June 17, 2020, 12:49:09 PM »
Just speculating, but my guess is that as long as you can show proof you incurred the expense (ie: via the charge on your credit card statement), you could count it. Of course if the same credit card statement shows a credit for cashing in points for the exact same amount, it would muddy the waters a bit.

That's if you charge your cc and then use points to cover the expense; what about using airline miles or hotel points or lets say bank points directly to book is than an expense?

Offline yoni1983

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Re: DANSDEALS TAX CREDIT
« Reply #10 on: June 17, 2020, 01:15:30 PM »
No, in that scenario you for sure would not ger a credit, as up until now airline and cc miles/points have no taxable value per the IRS. So just like you don't have to include their value as taxable income, you also won't be able to count them as an expense.

Offline davidd75

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Re: DANSDEALS TAX CREDIT
« Reply #11 on: June 17, 2020, 02:55:47 PM »
No, in that scenario you for sure would not ger a credit, as up until now airline and cc miles/points have no taxable value per the IRS. So just like you don't have to include their value as taxable income, you also won't be able to count them as an expense.

what about hybird points like ultimate reward points which can be used to book directly hotels and airlines etc...?

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Re: DANSDEALS TAX CREDIT
« Reply #12 on: June 17, 2020, 06:09:39 PM »
How will they determine what's "away from home"? Or is it going to include everything travel related including local?

Current bill requires travel to be at least 50 miles from residence.

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Re: DANSDEALS TAX CREDIT
« Reply #13 on: June 17, 2020, 06:10:00 PM »

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Re: DANSDEALS TAX CREDIT
« Reply #14 on: June 17, 2020, 10:07:25 PM »
how does it make sense to give a credit for vacation only when people are desperate to pay their bills?