Tax Benefits that have been Extended for 2015

tax tip

On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act (PATH Act). The new law extends the following tax benefits:

  1. Additional Child Tax Credit – The income threshold limit was changed from $10,000, indexed for inflation, to an unindexed $3,000.
  2. American Opportunity Tax Credit (Hope Credit) – Allows for up to $2,500 in credits for up to four (4) years of college expenses.
  3. Educator Expenses – Allows up to $250, indexed for inflation, to be deducted by elementary and secondary school teachers.
  4. State and Local Sales Tax – Now a permanent deduction.
  5. Charitable Contribution by an IRA – Allows a distribution from an IRA to a charity to be tax free.
  6. Section 179 Deduction – The $500,000 limit was made permanent.
  7. Discharge of Principal Residence Indebtedness – This exclusion was made permanent.
  8. Tuition and Fees deduction – Extended to 2016.
  9. Deduction for Mortgage Insurance Premiums – Extended to 2016. If you are having taxing problems and need help, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.
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