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How will extended tax provisions affect you and your family

1/16/2016

How will extended tax provisions affect you and your family?

 
 
The scramble is over. Congress finally passed last-minute legislation dealing with more than 50 tax provisions that expired December 31, 2014. With tax season at our front door, tax payers, tax preparers, and the IRS are all breathing a sigh of relief now that we know what law applies to 2015 tax returns.
 
Some tax provisions were made permanent while others were extended from two to five years. In a statement released by House Speaker Paul Ryan, he stated we are "ending Washington's days of extending tax policies one year at a time…permanent extenders will shield families from a tax hike and provide businesses with greater economic certainty to grow and prosper."
 
January 2016 marks the perfect time to make an appointment with your professional tax advisor and get your tax planning started. To help you prepare, Zink CPA has compiled a partial list of some key legislation items that were extended or made permanent.
  • 24(d) Enhanced American Opportunity tax credit is made permanent. Beginning in 2016, the provision requires the taxpayer claiming the American Opportunity credit to report the EIN of the educational institution to which the individual made tuition payments. Provision made permanent
  • 25A Enhanced child tax credit is made permanent.
  • 32(b) Enhanced earned income tax credit is made permanent.
  • 62 $250 teacher supply deduction is made permanent. Beginning in 2016, the provision also indexes the $250 cap to inflation and includes professional development expenses.
  • 163 Mortgage insurance premium deduction as mortgage interest is extended to Dec. 31, 2016.
  • 170 Contributions of real property for qualified conservation purposes is made permanent.
  • 222 Tuition deduction is extended to Dec. 31, 2016.
  • 408 IRA transfers to charity in lieu of RMDs made permanent.
While this list is just a short sampling, we hope it has encouraged you to find out how these and many other items may affect your tax return. Contact us via phone at 239.936.1120 or email for an appointment at accounting@zinkcpa.com. Also, visit our website at calculators for personal and business financial calculators for many of your day-to-day money questions. We look forward to hearing from you. Happy New Year!
 
Gordon Zink CPA, PA is a proud member of the Florida Institute of Certified Public Accounts