What You Need To Know About Tax Extenders

April 20, 2018

Recently, Congress enacted some new tax extenders, which might benefit you when you file your 2017 taxes. Therefore, before filing your tax returns for 2017, you might want to take a look or talk with your tax advisors to see what extenders might benefit you. Even if you have already filed, it might not be too late to submit an amended return if you feel that you benefit from them.

Tax Extenders

It is not uncommon for tax extenders to come into play each year. These are usually temporary tax breaks for which Congress must pass legislation every year or two to extend the deadlines so they remain in place. At times, Congress might choose to make some tax extenders permanent rather than continually extended the deadline.

Tax Extenders for 2017

Congress signed into legislation on February 9, 2018, as part of the Bipartisan Budget Deal tax extenders for the 2017 tax year. Unlike some years, this legislation put a term limit of just one year rather than two on most of the extensions. Although there are several tax breaks included, many are very specific, so they will not impact most taxpayers. For example, there are provisions extended that provide tax breaks to miners and racehorse owners.

Some of the more common extensions include:

• Tax credits for non-business or residential energy property
• Tax credits for alternative fuel vehicle refueling property
• Tax credit for new qualified fuel cell motor vehicles or two-wheeled plug-in electric vehicles
• Treating mortgage insurance premiums as qualified residence interest
• Deduction for qualified tuition payments and related expenses

It is important to note that although several of these have been extended, it does not mean everyone qualifies for them. Some of them have certain restrictions, such as income requirements. Discussing it with your Encino tax consultants can help you determine whether you qualify.

If you feel that you might benefit from the tax extenders or otherwise need to discuss your taxes, then look for Los Angeles Tax Preparation services. You can also check out Wallace APC’s resource center to find additional information.