If you're one of the many American taxpayers who had to forgo a deduction you're used to claiming or are still waiting to file so that you don't have to later amend your tax return, you are probably pretty frustrated (and rightfully so!) by this point. Typically, tax extenders are passed prior to April 15th so as not to hold up the filing of returns (and typically, the receipt of refunds) as well as to minimize the number of tax return amendments that will be necessary for those who can't wait. Not the case this year. It is June 21st at the time this blog post is being written, and we are still yet to have these tax extenders passed into law. Some positive news, however, is that the House Ways and Means Committee passed a tax extender package on Thursday, which essentially just re-energizes the conversation, which had mostly stalled due to the inclusion of certain additional pro-business provisions in the original tax extender package. I'll let you guess which political party took issue with that.
What exactly are the major tax extenders we're discussing here? Private Mortgage Insurance, Tuition & Fees Deduction, and debt forgiveness on foreclosure are at the top of the list, although there are quite a few more that deal with the renewable energy sector and various employer tax credits.
What else would be added in under the House Ways and Means Committee bill? For one, moving the current estate tax exemptions under the Tax Cuts & Jobs Act to expire in 2022 instead of 2025. Tax relief would be provided to victims of natural disasters occurring beginning in 2018. Also, it would repeal the ridiculous 21 percent tax imposed on non-profits' provision of certain fringe benefits to its employees (namely transportation benefits).
Sometimes in life, you have to make a decision, even when that decision isn't perfect, or even great for that matter. I think we're approaching that point when it comes to the tax extenders, let's get this sucker passed so we can all move forward.
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