With all the changes to the Internal Revenue Code that took effect in the 2018 tax year, it may not surprise Boston residents that more changes could come for 2019. Not all tax breaks survive through to another year, and this year may be no exception. As the country enters the fourth quarter of the year, some people may already be looking to taking advantage of as many tax breaks as possible when they file their returns with the IRS.
Now would probably be a good time to find out whether certain temporary tax breaks will be available at tax time. The problem is that Congress still has plenty of time to either approve or disprove them, and that ordinarily does not happen until late in December or early January, depending on the circumstances. This does not leave a lot of time for the IRS to catch up in time to release the proper forms.
Some of the tax breaks on the chopping block for the 2019 tax year include mortgage debt forgiveness, tuition and fees deduction, and private mortgage insurance. If Congress does not renew these particular tax breaks, others may be available to provide similar relief. However, the impact on a particular individual’s taxes needs to be assessed.
With all of the tax breaks that tend to come and go, it can be a challenge for Boston taxpayers to plan for their income taxes and future dealings with the IRS. For some, planning for tax season is almost like gambling. They never quite know what will provide them with the best tax situation possible. It could help to work with a tax attorney whose job it is to keep up with the changes in the Internal Revenue Code.