Alert: Expired Tax Breaks Revived for 2017

Alert: Expired Tax Breaks Revived for 2017

Congress passed a federal budget bill in early February that revived many expired tax breaks for the 2017 tax year. They include a deduction for education expenses as well as several tax breaks for homeowners.

If you have not yet filed your 2017 tax return, please be aware these changes are retroactive to the beginning of 2017. If you have filed, your return may be amended to capture any tax benefits that apply to your situation.

Review these tax breaks to see if they apply to your situation:

Tuition and fees deduction. If you paid qualified tuition or expenses related to higher education, you may be able to deduct as much as $4,000 of those costs. This can be done on a regular return (without itemizing). The deduction is capped at $4,000 for single filers with adjusted gross income (AGI) of $65,000 or less ($130,000 married filing jointly) and capped at $2,000 for single filers with AGI of $80,000 or less ($160,000 married filing jointly).

Mortgage insurance deduction. If you paid mortgage insurance premiums, you can once again deduct those amounts as an itemized deduction. This deduction begins to phase out for taxpayers with AGI of $100,000 or more.

Mortgage debt forgiveness exclusion. If qualifying mortgage debt on your primary residence was discharged or forgiven, you can exclude that amount from your income.

Energy-efficient home improvement credit. Energy-efficient home improvements (such as upgrades to windows, or heating and cooling systems), may be eligible for a tax credit equal to 10 percent of the amount paid, up to $500.

Give us a call if you have any questions. 

Bill Hampton, CEO

Hampton Tax and Financial Services, LLC

Tel: 404-482-3170

Website: www.HamptonFinancialLLC.com

Connect with me: www.LinkedIn.com/in/BillHamptonFinancialAdvisor