The year-end spending bill signed into law by President Trump on December 20, 2019, included many tax items that could affect your tax return.
We highlight a few of them here.
~ Allows 529 withdrawals of up to $10,000 over the student’s lifetime to be used to pay down student loan debt.
~ Allows 529 withdrawals to cover expenses incurred with registered apprenticeship programs.
~ Extended the provision to exclude the discharge of qualified personal residence debt from income.
~ Extended the provision to allow a deduction for mortgage insurance premiums as long as taxpayer’s income is within the threshold.
~ Restores the lower floor of 7.5% of adjusted gross income (AGI) for deduction of medical expenses. Taxpayers that itemize can deduct medical expenses to the extent that they exceed 7.5% of their AGI. Previously, the floor was set to be 10% of adjusted gross income.
~ Extended the availability of an above-the-line deduction for qualified tuition and expenses. Taxpayers can choose either an education credit or the deduction based on which is more beneficial to them.
Contact us today for more information.
Honorine M. Campisi, CPA