On December 20, 2019, President Trump signed the bill for the Tax Extender and Disaster Relief Act of 2019. There are 25 expired tax provisions in Subtitle A and 3 in Subtitle B.

A bill to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, to provide disaster tax relief, and for other purposes.

Below are a few I thought would interest you.

Sec. 101. Credit for nonbusiness energy property (sec. 25C).
The provision extends through 2019 the credit for purchases of nonbusiness energy property. The provision allows a credit of 10 percent of the amounts paid or incurred by the taxpayer for qualified energy improvements to the building envelope (windows, doors, skylights, and roofs) of principal residences. The provision allows credits of fixed dollar amounts ranging from $50 to $300 for energy-efficient property including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans. It is subject to a lifetime cap of $500.

Sec. 123. Mortgage insurance premiums treated as qualified residence interest (sec. 163(h)(3)).
The provision provides for the treatment of qualified mortgage insurance premiums as interest for purposes of the mortgage interest deduction through 2019. This deduction phases out for taxpayers with adjusted gross income (AGI) over $100,000 ($50,000 if married filing separately).

Sec. 124. Above-the-line deduction for qualified tuition and related expenses (sec. 222).
The provision provides through 2019 for an above-the-line deduction for qualified tuition and related expenses for higher education. The deduction is capped at $4,000 for an individual whose AGI does not exceed $65,000 ($130,000 for joint filers) or $2,000 for an individual whose AGI does not exceed $80,000 ($160,000 for joint filers).

Sec. 151. Temporary reduction in medical expense deduction floor (sec. 213(f)).
Before 2017, individuals could claim an itemized deduction for unreimbursed medical expenses, to the extent that such expenses exceeded 10 percent of AGI. The provision extends a lower threshold of 7.5 percent, originally enacted for 2017 and 2018, through 2019.

In the coming weeks, I will be reviewing your past returns to see if you qualify for any of these tax provisions. And as always, you have any questions, please call me 443-605-3167 or email rknevarez@gmail.com.