Congress has recently passed the Protecting Americans from Tax Hikes Act of 2015 which will extend a number of important tax breaks that people should know about. The new PATH Act is unique because it will make some of the tax extenders permanent. This legislation will make enhancements to the child tax credit, American Opportunity tax credit, and the earned income tax credit permanent. “In addition to the $1,000 credit per child, those claiming the child tax credit will now be entitled to a refundable credit to the extent of 15 percent of earned income in excess of $3,000 (the amount was scheduled to increase to $10,000 in 2018).” Taxpayers that are 70 ½ or older will be able to permanently make tax-free charitable donations directly from their IRA accounts. The new legislation will also have important incentives for small business, and it will also have an impact on health care related expenses.
See Robert Bloink and William H. Byrnes, Post-PATH: The new tax breaks you need to know, Life Health Pro, December 21, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
