On December 18, 2015, Congress passed the PATH Act, which stands for "Protecting Americans from Tax Hikes." As widely reported, the bill extends and enacts a large number of tax provisions. Here are two that caught our attention and serve as examples of how the PATH Act might affect you.
IRA Charitable Distributions
The law makes permanent the IRA qualified charitable distribution (QCD) option that allows taxpayers age 70Â½ or older to use up to $100,000 of IRA assets per year as a tax-free contribution to qualifying charities. Eligible taxpayers now have until December 31 each year to make tax-free QCDs from their IRAs. Payments generally must be made directly from the IRA to the charity.
College Savings Plans
Previously, 529 College Savings Plan rules treated a computer as a "qualified higher education expense" only if it was a requirement for the beneficiary to enroll or attend college. Now, computers or peripheral equipment, computer software, and Internet access or related services are considered qualified higher education expenses as long as the beneficiary is the primary user while enrolled in school.
Please consult your tax advisor to determine which new tax provisions may apply to you.
If you are in the process of collecting your tax information, your 2015 Pittsford FCU IRS forms such as 1099-INT (If total amount paid to you is $10 or more), 1099-R, 1098, and 5498 are available to you within Internet Banking. If you are still receiving a mailed copy of these forms and would like to switch to electronic forms only, call us.
If you plan to prepare your own taxes, don't forget you can do this through Internet Banking at PittsfordFCU.org. Once you've logged in, simply click on the "My TurboTax®" tab to get started.
If you're lucky enough to be getting a tax refund this year, take advantage of IRS Direct and get your refund up to three weeks earlier. Just complete the requested information on your IRS tax return form under the section labeled "Refund" and input your Pittsford FCU savings or checking account number, from your statement or Internet Banking Account Details, and Pittsford FCU's ABA/routing & transit number 222381918.
As always, our free Income Tax Handbook is now available at both Pittsford FCU branches.
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