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:
- Additional Child Tax Credit – The income threshold limit was changed from $10,000, indexed for inflation, to an unindexed $3,000.
- American Opportunity Tax Credit (Hope Credit) – Allows for up to $2,500 in credits for up to four (4) years of college expenses.
- Educator Expenses – Allows up to $250, indexed for inflation, to be deducted by elementary and secondary school teachers.
- State and Local Sales Tax – Now a permanent deduction.
- Charitable Contribution by an IRA – Allows a distribution from an IRA to a charity to be tax free.
- Section 179 Deduction – The $500,000 limit was made permanent.
- Discharge of Principal Residence Indebtedness – This exclusion was made permanent.
- Tuition and Fees deduction – Extended to 2016.
- 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.