Nothing is certain but death and taxes Message. Recycled paper note pinned on cork board. Concept Image

“In this world nothing can be said to be certain, except death and taxes.”  – Benjamin Franklin

 

On December 18, 2015, President Obama signed the Protecting Americans from Tax Hikes Act of 2015 (the “Act”) into law.  The Act ensures the continuation of many favorable tax provisions that had expired. Listed below are just a few of the provisions related to individuals that were either extended temporarily or permanently.

 

1.Enhanced child tax credit is made permanent
2.Enhanced earned income tax credit is made permanent.
3.$250 teacher supply deduction is made permanent. Beginning in 2016, the provision also indexes the $250 cap to inflation and includes professional development expenses.
4.PMI deduction as mortgage interest is extended to Dec. 31, 2016.
5.Election for itemizers to deduct sales tax in lieu of income tax is made permanent.
6.Tuition deduction is extended to Dec. 31, 2016.
7.IRA transfers to charity in lieu of RMDs is made permanent.

 

Laura M. Trujillo

ltrujillo@mclawfirm.com