Tax Credits that Extend into 2015 Tax Year

TAX CREDITS

19 Jan Tax Credits that Extend into 2015 Tax Year

Our president signed the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) on December 2015. The new law has the following effects on 2015 Tax Year:-

• Additional Child Tax Credit – The new law sets the threshold permanently at $3,000, allowing for a higher credit for taxpayers who qualify.
• Enhanced American Opportunity Tax Credit – The new laws make the American Opportunity Tax Credit (AOTC) permanent, providing a credit up to $2,500 for four years of post-secondary education.
• Enhanced Earned Income Credit (EIC) – The new laws make permanent the enhanced EIC, i.e. the EIC amount was increased for taxpayers with three or more children. Also by increasing the phase-out ranges, the marriage penalty was effectively reduced.
• Educator Expenses – The new laws set this qualified deduction permanent, at a cap of $250, which will be adjusted for inflation beginning in 2016.
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