The budget bill signed this past Friday includes the extension of some expired tax breaks retroactively through December 31, 2017. This will affect many individuals across the country, including some that have already filed for the 2017 tax year.
The list of extended tax breaks is long, but those most likely to affect individual taxpayers are:
Above-the-line deduction for qualified tuition and related expenses
Mortgage insurance premiums treated as qualified residence interest
Exclusion from gross income of discharge of qualified principal residence indebtedness
Credit for nonbusiness energy property (insulation, windows, storm doors, heat pumps, furnaces, etc.)
Credit for residential energy property extended through 2022 (solar, wind, geothermal systems)
Credit of up to $2,000 each for contractors building qualifying energy efficient homes
Credit for 2-wheeled plug-in electric vehicles
Credit for qualified fuel-cell motor vehicles
Credit for alternative fuel vehicle refueling property
The IRS has not yet issued a statement on how these changes will be handled or when their system will be updated to reflect them. It’s possible some individuals who already filed may need to file an amended return. Those who will be affected by these changes and haven’t yet filed should hold off on doing so until the IRS releases further info.
If any of these changes may apply to you, watch our Facebook page and we will update as soon as we have more information. If you have questions about your return, call our office at 860-216-2195 or email us at email@example.com.