What deductions were extended that had previously expired (filing season 2020)?
The Further Consolidated Appropriations Act, 2020, passed on December 20, 2019, extended several expired tax provisions and deductions.
Preparers should review the taxpayer's information to determine if any of the extended items may affect their return. To assist you with this review, some forms are watermarked and others produce a red message when data entry includes an affected deduction or changed form. Drake will enable updates when the IRS finalizes the changes, and updates the forms and instructions.
Some extenders include:
- Form 982 - Exclusion from gross income of discharge of qualified principal residence indebtedness
- Schedule A Deductions:
- Private mortgage insurance deduction (PMI)
- Reduction in the medical expense deduction floor (EF message 4006),
- Form 8917 - Tuition and fees deduction
- Form 6478 - Biofuel Producer Credit
- Form 6627 - Environmental Taxes
- Form 8844 - Empowerment Zone Employment Credit
- Form 8864 - Biodiesel and Renewable Diesel Fuels Credit
- Form 8900 - Qualified Railroad Track Maintenance Credit
- Form 8910 - Alternative Motor Vehicle Credit
- Form 5695 - Residential Energy Credits, part II Non-business Energy Property Credit
and other items listed in Division Q - Revenue Provisions of the Further Consolidated Appropriations Act, 2020.