Congress actually accomplished some important but lesser-known work beyond the SECURE Act it just passed on 12/20/2019 and Trump signed it into law a few days later.
For example, as part of the year-end spending law to keep the government funded, Congress has retroactively revived through 2020 more than two dozen temporary tax breaks that had expired after 2017 with the new TRUMP tax laws (TCJA) effective 2018.
Among those laws CONGRESS bought back to life:
* Letting debtors treat as tax-free up to 2 million dollars of forgiven debt on their primary homes in case there was a foreclosure or short sale.
* Congress also brought back the $4,000 tax deduction for college tuition, as well as the private mortgage insurance deduction PLUS the income tax credit for installing energy-efficient windows and hot water heaters and doors in your residence
* When Congress enacted the TCJA In December 2017 and changed how your children calculate their tax on their investment-type income. The TCJA changes led to much higher tax bills for many children. On December 19, 2019, Congress passed a bill that the president signed into law on December 20, 2019. The new law repeals the kiddie tax changes from the TCJA and takes you back to the old kiddie tax rules, even retroactively if you so desire.
* And for some individuals that purchased health insurance on the state exchange… they may qualify for a credit for health insurance costs. It’s worth a try.
AND if you qualify for any of those tax breaks, you can file amended federal and state tax returns to claim them.
I’ll add more “tax-break revivals” and details in my next Tax Tips newsletter.
Has your tax preparer let you know about any of the above if the might be applicable to you?
I don’t do tax returns. I only do TAX-PLANNING to save successful business owners and the high-earning self-employed lots of money on IRS/State taxes – this year, next year and every year going forward – WHILE THEY ARE WORKING.
And of course, I help ALL FOLKS who are serious about retirement planning, SAVE taxes during their retirement using 7 strategies (and more) that I fully describe in my “GET Me to ZERO” book. The updated 2020 edition is now available on amazon.
Anyway, if you think you may have qualified for any of these, see your tax professional about this! Feel free to refer them to this post if need be.
all the best… Mark