When the government passed the spending bills at the end of December they also passed a bunch of tax provisions. Beyond the SECURE Act, there also are the extenders. The extenders are provisions that had sunsets in the past that they want to bring back. There are new tax deductions back that are returning like old friends. Things like the credit for putting insulation in your home, to private mortgage insurance as an interest deduction. Tuition and fees as a deduction. Things like that that have been in the past are now back. So these are new things you’ll see on this year’s return.
It will also create complexities for your MN return, remember Minnesota doesn’t adopt any of these changes until the legislature says so. Also, there are potential refund opportunities for your 2018 return. Because, when they extended the provisions they went back to January 1, 2018. So, who knew that they could change laws at the end of 2019 all the way back to the beginning of 2018, but sometimes it happens.
Happy tax season!
Have questions about business tax deductions? Reach out to JAK