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On December 20, 2006, President Bush signed into law the "Tax Relief and Health Care Act of
2006." This new act extends several tax provisions that had expired
at the end of year 2005.
Some major highlights of the new tax law are:
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Extension of "State & Local Sales Tax
Deduction" for tax years 2006 & 2007
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Extension of the "Above-the-Line Tuition &
Fees Deduction" for tax years 2006 & 2007
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Extension of the "Teacher's Classroom
Expense Deduction" for tax years 2006 & 2007
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Extension of the "Research", "Work
Opportunity" & "Welfare-to-Work" tax credits for tax years 2006 and 2007
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Extension of the "15-Year Recovery Period
for Leasehold & Restaurant Improvements" for tax years 2006 & 2007
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Extension of the "Election to Treat
Non-Taxable Combat Pay" as earned income for calculating the earned
income credit (EIC) for tax years 2006 & 2007
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Enhancements of Health Savings Accounts
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Extension of several energy tax incentives
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Extension of the availability of Archer
Medical Savings Accounts (MSA's) for tax years 2006 and 2007
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Extension of the District of Columbia
first-time homebuyer tax credit
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New deduction for certain mortgage insurance
premiums (PMI) on personal residence
Technical Explanation and Other Provisions of the Act
For more information
on the
Tax Relief and Health Care Act of 2006,
click here

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