"Legislative Extenders"
Tax Law Changes Signed Into Law Dec 2019

A bill to extend expired or expiring tax provisions was signed into law in December 2019. The provisions of the bill include:

  • PMI (Private Mortgage Insurance) is once again deductable if the taxpayer itemizes deductions. This provision is retroactive back to TY2017, so if a return for 2017 or 2018 is ammended, inquire if PMI was paid in those years.

  • The medical expense threshold for itemized deductions stays at 7.5%. (It had been scheduled to go to 10% for TY2019.)

  • The correspnding threshold for calculating the penalty on an early withdrawal from a retirement account (to pay medical expenses) also stays at 7.5%. (It had been scheduled to go to 10% for TY2019.)