|| "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.)
- Exclusion of income from cancelled mortgage debt has been reinstated.
- Non-business energy credits are back.
- Tuition and fees deduction is back.