At the 11th hour, again, Congress decided to extend many tax breaks, commonly referred to as Extenders. The new law is called Protecting Americans Against Tax Hikes Act of 2015 which extended some permanently while some were extended another two years. These breaks affected both businesses and individuals. I am sure that if your tax professional is an Enrolled Agent, he or she is up on these many laws due to their requirement for tax continuing education. Just make sure you ask if they are, no matter who prepares your return. In this blog, I will mention some of the more common one affecting individuals (next time, I will address business extenders
- A) The Child Tax Credit is permanently expanded
- B) The Earned Income Tax Credit is also permanently expanded
- C) The American Opportunity Credit was made permanent
- D) The deduction for the state sales tax was permanently extended.
- E) Charitable distributions from IRAs are now permanently tax-free for those 70½ of age or older
- F) The exclusion of cancellation of indebtedness income for qualified mortgages is extended through 2016
- G) The deductibility of qualified mortgage insurance premiums was extended through 2016