IRS rules defining dependents and EITC qualification are to be amended
The IRS proposed changing its position on when taxpayers may qualify as childless for purposes of the Sec. 32 earned income tax credit.
Credits
Maximizing the EITC for deployed troops
This article discusses why deployed troops who are in harm’s way are getting less benefit from the EITC, how it affects their households, and a simple solution to the problem.
Some individuals mistakenly received the advance premium tax credit
Health care exchanges failed to properly verify the identity and eligibility of all individuals who received the advance premium tax credit, the Treasury Inspector General for Tax Administration reported.
Current Developments in Taxation of Individuals
A number of recent significant developments affect taxation of individuals.
Accelerating AMT Credits in Lieu of Bonus Depreciation
Changes provided in the PATH Act allow a much larger pool of potential credits than had been previously available.
IRS Proposes Changes to Rules for Dependents
The IRS proposed changes to various rules affecting dependents, including changing its position on when taxpayers count as “childless” for purposes of the earned income tax credit.
IRS Proposes Rules for Reporting and Claiming Tuition Expenses
The IRS is proposing to amend the rules governing eligibility to claim a deduction or credit for eligible education expenses to conform them to recent legislative changes.
Individual Tax Update
This article covers recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
IRS Explains the Reinstated Sec. 35 Health Coverage Tax Credit
IRS issued a notice to explain how the recently reinstated Sec. 35 health coverage tax credit applies for 2014 and 2015.
Individual Taxation: Recent Developments
This article covers recent developments in the area of individual taxation arranged in Code section order.
Congress Makes Changes to Popular Tax Credits
Changes include new restrictions, penalties, and due diligence requirements for practitioners and affect the child tax credit, the American opportunity credit, and the EITC.
Passive Activity Credit Flowchart
Understanding the limitations on the use of passive activity credits is a key element in providing sound tax advice to clients.
Trade Preferences Act Amends the Tax Code
The Trade Preferences Extension Act of 2015, enacted on June 29, contains a few tax provisions in addition to the trade measures that were the focus of the bill.
Directions in Individual Taxation
This article covers recent developments in the area of individual taxation, including the treatment of support payments and IRA and qualified plan distributions, the Sec. 469 material participation rules, and the taxability of state economic development credits.
Supreme Court Allows Premium Tax Credits in Federal Exchanges
The Supreme Court upheld the availability of premium tax credits under the PPACA when they are provided through health exchanges run by the federal government.
Claiming the Credit for Residential Energy-Efficient Property
Taxpayers can claim a residential energy-efficient property (REEP) tax credit for 30% of the cost of eligible solar water heaters, solar electricity property, fuel cell property, small wind energy property, and geothermal heat pump property (Sec. 25D).
IRS Will Waive Penalties for Underpayments Related to the Premium Tax Credit
IRS will provide automatic penalty relief for premium tax credit underpayments.
How to Claim the Residential Energy-Efficient Property Credit for Geothermal Heat Pump Property
A taxpayer who meets certain requirements can claim the credit for expenses associated with geothermal heat pump property.
Appellate Courts Reach Conflicting Decisions on Premium Tax Credit Regs.
On the same day, the D.C. Circuit and Fourth Circuit Courts of Appeals issued decisions on whether Regs. Sec. 1.36B-2(a)(1), which authorizes a premium tax credit for insurance purchased on health insurance exchanges established by the federal government, is a valid regulation.
IRS Issues Guidance on Health Insurance Premium Tax Credits
The IRS issued regulations and revenue procedures addressing how to calculate the Sec. 36B premium tax credit, including how the credit is calculated in conjunction with the Sec. 162(l) deduction for health insurance premiums of self-employed individuals.
