Okay. Let’s pretend you’re back in college and you have to turn in an essay to your professor by Monday.
But you know that you can’t meet that deadline so you ask your prof for an extension.
Well, that’s what lawmakers have done. They’ve granted themselves an extension (and didn’t even have to ask anyone for permission!)
Here’s why lawmakers wanted to put things off…
The fact is, lawmakers wanted to avoid making the federal budget-deficit projections look worse than they are. (No surprise.)
So they passed the “Taxpayer Certainty and Disaster Tax Relief Act” of 2020.
This law allows lawmakers to temporarily extend tax breaks into the future, rather than making them a permanent part of the tax law.
Specifically, lawmakers decided to:
- Make a few extenders permanent
- Extend some provisions through tax-year 2021
- Extend other provisions to 2023, 2024, and even 2025
How does all this affect you and your tax planning?
You’ll find out when you…
Lawmakers Extend the Tax Extenders
With the COVID-19 Relief Law
Here’s a quick look at some of the key extensions
What are the “Big Five?”
I’m not talking about a football conference. Here, The Big Five refers to Form 1040 tax breaks that were scheduled to expire on December 31, 2020. We’ll explain all five when you read the full article.
What did Congress do with each of the five provisions?
This is important. We’ll explain all five of them to you when you read the full article.
What provisions were made permanent?
Congress bit the bullet and made important tax provisions a permanent part of the tax code. We’ll explain five of them when you read the article.
What was extended to 2021?
Congress extended fifteen tax provisions through tax-year 2021. We’ll tell you what they are when you read the full article.
What was extended to 2024 and 2026?
Lawmakers extended the date for the energy-property tax credits (with one exception). We’ll give you the whole story when you read the full article.
What was extended through 2025?
There are two tax provisions you need to know about. We’ll give you all the details when you read the full article.