- Qualified mortgage insurance premiums – Qualified homeowners with mortgage insurance can deduct 100 percent of their premium costs.
- Tuition and fees deduction – College students or parents can deduct up to $4,000 in college tuition and other education-related fees and expenses, like books and supplies, paid during 2017.
- Cancellation of mortgage debt – Individual borrowers who had their mortgage debt forgiven in 2017 do not have to pay income tax on the forgiven amount as long as the debt qualifies for the exclusion.
Congress recently extended a number of tax breaks for 2017 that include the extension of a few previously expired deductions and credits. Here’s a look at three of the key provisions that impact individuals and families.
Up until the end of 2016, taxpayers could deduct the cost of college tuition and other education-related fees and expenses for their spouses, their dependents, and themselves. The tuition and fees deduction was an adjustment to income that could be taken directly on the first page of Form 1040 or the shorter Form 1040A.
These "above the line" deductions are particularly advantageous because you don't have to itemize to claim them and they help to determine your adjusted gross income or AGI.
Several other tax breaks can depend on your AGI because they're phased out or even eliminated entirely for taxpayers whose AGIs are too high.
Alas, you'll have to depend on other above-the-line deductions if you want to try to whittle away at your AGI going forward. The tuition and fees deduction was scheduled to sunset or expire at the end of 2016 unless Congress acted to breathe new life into it, and Congress did not.