HEALTHCARE:

Preparers needed and received IRS guidance on the individual healthcare mandate to verify whether their clients have coverage or qualify for an exemption to the penalty. This filing season will be difficult for taxpayers and Preparers due to the individual healthcare mandate and the health premium tax credit.  Please note that penalties will increase in 2015.

EDUCATION:

529 college savings plans will remain the same. You may have heard that President Obama wanted to make changes but the idea has been tabled for the moment.

REAL ESTATE:

Real estate agents can claim a special tax break on their rental losses. Their rental real estate losses are exempt from the passive loss rules if they spend more than one-half of their time and at least 750 hours per year materially involved in real estate, IRS says privately.  Mortgage brokers are not eligible.

ALIMONY:

Child support has priority over alimony for tax purposes, according to the Tax Court. If an ex-spouse doesn’t pay the full amount of child support and alimony due, the partial payment is treated first as nondeductible child support, and any excess is alimony.