IRS Extends ‘Popular’ Tax Provisions

The Internal Revenue Service released Wednesday the list of tax provisions extended for the 2019 filing season.

“Popular” tax provisions extended, the IRS said, are:

• Deduction for above-the-line qualified tuition and related expenses claimed on Form 8917, Tuition and Fees Deduction;
• Deduction for mortgage insurance premiums treated as qualified residence interest, claimed on Schedule A, Itemized Deductions;
• Deduction for unreimbursed medical and dental expenses as the floor was lowered to 7.5% of adjusted gross income and claimed on Schedule A, Itemized Deductions;
• Credit for nonbusiness energy property claimed on Form 5695, Residential Energy Credits; and
• Income exclusion for canceled debt for qualified principal residence indebtedness where the taxpayer defaulted on a mortgage that they took out to buy, build or substantially improve their main home claimed on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness

The IRS notes that recent legislation also modified the rules related to the “Kiddie Tax” for certain children who may be able to calculate their tax based on the tax rate of the child’s parent.

For tax year 2019, taxpayers can elect this alternative application for the tax on their unearned income by completing Form 8615, Tax for Certain Children Who Have Unearned Income, differently depending on their election.

Taxpayers who make this election for 2019 must include a statement with their return specifying “election to modify tax of unearned income.”