Tax Breaks Extended for 2017?

On Friday, Congress approved a bill that extends tax breaks that expired at the end of 2016 through 2017.  I know what you are probably thinking…it is the middle of February 2018 and Congress just passed a bill to extend provisions for tax year 2017?!?

What was included in the extenders bill? 

The items that are extended are not significant for most taxpayers but include the following:

  • Mortgage insurance premiums treated as qualified residence interest
  • Above-the-line deduction for qualified tuition and related expenses
  • Exclusion from gross income of discharge of qualified principal residence indebtedness
  • Credit for nonbusiness energy property
  • Credit for residential energy property
  • Credit for new qualified fuel cell motor vehicles

There are also some more obscure deductions and credits that got extended so make sure to consult with your tax advisor if there were credits you took in 2016 that were expected to expire. Tax Extenders Bill

What does this mean if I already filed my tax return?

First of all, congratulations on filing your tax return early!  Unfortunately, if the deduction or credit is significant enough, you might need to file an amended tax return to claim the recently extended provisions.  Having said that, the IRS has issued a statement in response to the tax extenders that said the following:

“The IRS is reviewing the legislation signed Feb. 9 that retroactively extended and modified numerous tax provisions covering 2017. We are assessing these significant changes in the tax law and beginning to determine next steps. The IRS will provide additional information as quickly as possible for affected taxpayers and the tax community.”

If you believe any of the deductions or credits listed above impact your tax situation, reach out to your tax advisor for additional guidance.

Contact information for members of TeamDKB's Tax Team can be found at the following links:
Business & Corporate Tax Team & Individual and Family Tax Team

 

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Monday, 25 June 2018

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