TY 2018 Tax Extenders

[kam]

Since the focus last year was on TCJA and right now the partial gov't shutdown, can we assume the non-permanent Tax Extenders (i.e., discharge of qualified principal residence indebtedness, residential energy credits, etc.) are dead? Or did I miss something?

[terryats]

Check out this link. https://taxfoundation.org/2018-tax-extenders/

[mastertaxguy]

There is a "technical explanation" by the Joint Committee on Taxation re: "Chairman's Discussion draft of the 'Tax Technical and Clerical Corrections Act'" dated January 2, 2019 available from the Joint Committee on Taxation web site. www.jct.gov (document JCX-1-19)

[John of PA]

I just was told in a Webinar from an inside person it is still in limbo. There is a 50/50 chance extenders could be passed late, say in Feb or March. We (and the software companies) have no choice but to proceed without the extenders. (like was done last year) This could result in amended tax returns if material enough but to hold up returns is a judgement call as it could go either way. I am not holding up returns. Actually many states are doing the same thing. Some states are still deciding if they are going to adopt TCJA or not. That is to say states that have a rule where you can only itemize on the state return if you did on the Fed return. State taxes could be substantailly higher this year as more 1040's will use the Standard deduction. Any updates on this state issue would be helpful to be posted on this forum as the forum users come across them.

[TAX4US]

It looks like VA will follow old rules. Sch A on fed = Sch a on state Stnd on fed=stnd on state. In some cases I looked tp's will owe state this year.

[ttbtaxes]

Georgia is following Federal so those who use the standard deduction on the Federal must use the standard deduction with Georgia.

NYS has totally decoupled so you can itemize regardless. Also, with NYS you can still claim 2% itemized deductions that are lost with the Federal.

[Burke]

If NYS has totally decoupled, does that mean no 199 deduction in NY?

[Dude]

If NYS has totally decoupled, does that mean no 199 deduction in NY?

Now THAT would be what I call a plot twist

[Uncle Sam]

NYS has always started with Federal AGI, not Federal taxable income - so I don't believe that NYS would factor in the QBI deduction as that's a Federal adjustment.

[John of PA]

Thank you for the link.

[ATSMAN]

I am not waiting for any tax extender legislation pass before end of tax season if this budget battle goes on. If it passes and it impacts my clients I will do amendments.