A Northwoods C.P.A. says the recently signed PATH Act will enable people who have been getting tax breaks to continue them.
Last week Congress passed and President Obama signed the Protecting Americans fromTax Hikes Act of 2015. Northland CPA's Director of Tax Services Brian Wild says taking care of this matter now gives taxpayers a chance to plan..
"....some of these provisions taxpayers have relied upon in the past to reduce their tax burden, but historically speaking, as they have expired, Congress has not enacted legislation until late in the year thereby making it very difficult for taxpayers to plan accordingly...."
Wild says these tax credits, like the Child Tax and Earned Income were in place but had a sunset clause and were eventually set to expire. Wild says the PATH act made permanent many key tax provisions...
"....teacher classroom deduction, qualified charitable distributions from IRA's, Code Section 179 which allows taxpayers, primarily business taxpayers, to expense certain qualifying acquisitions or improvements that they have in the current year...."
Wild says retired people might find it a bit easier to contribute to favorite charities under the Charitable Distributions from IRA's provision, which Wild says could be a 'game changer' for those folks. More on the changes is on the Northland CPA's websiteat Northland CPAs.com
