Tax Relief We Should Demand...
As the 3rd round of tax relief goes through the Congress and Senate kicking and screaming, here are some things us small fry should demand as well so we come out well on the back end…
- Tax on unemployment benefits should be waived for 2020 and 2021. As we collect unheard of amounts in unemployment, we will get hit with a huge tax bill when it comes time to file our taxes over the next two years.
- Tax on cancelled debt should be waived for the next 5 years. As Americans to to their credit cards to survive the collapsed economy, we will need to come out of it and negotiated debt cancellation with these companies. These cancellations are taxed--even the interest part. Wouldn't it be nice if they weren't.
- Student tuition credits should increase and broaden. College students are going into a very different environment than before. Educators are doing an admirable job of pivoting their business models rapidly. Still it isn't the same. To compensate for this, the government should increase the tuition credits provided and to whom.
Income levels allowed to take the education credits should also increase after all education is an investment and businesses get to right off all their investment expenses. Education is part of the business of our lives. Right now these income limits are ridiculously low.
Any unused tuition credits should be allowed to carry over to future years when they can be used just like capital gain losses.
The American Opportunity Credit should apply to graduate students, not just under graduates.
- With more Americans working at home than ever before the business use of home deduction should come back for those being paid through W2s.
5. Union needs to become more powerful not less (said no meat packer ever). Bring back the union dues deduction.