On December 20, President Donald Trump signed into law the Taxpayer Certainty and Disaster Tax Relief Act of 2019 . The new legislation retroactively resurrects and/or extends a bunch of individual and business federal income tax breaks, which we will call the extenders. The extensions generally go through 2020. This column covers what you need to know about the extenders that are most likely to help individual taxpayers.
* Taxpayers with modified adjusted gross income up to $65,000, or up to $130,000 if you’re a married joint-filer, can deduct qualified expenses up to $4,000. Key Point: The Act allows the exclusion for eligible debt cancellations that occur after 2020 under a binding written agreement that was entered into before 1/1/21.
Credit for fuel cell vehicles resurrected for 2018 and extended through 2020 You can claim a federal income tax credit for vehicles propelled by chemically combining oxygen with hydrogen to create electricity. The base credit is $4,000 for vehicles weighing 8,500 pounds or less. Heavier vehicles can qualify for credits of up to $40,000. An additional $1,000 to $4,000 credit is available to cars and light trucks to the extent their fuel economy meets federal standards.