Line items


Personal exemption claims are deemed for health care provisions

In Notice 2018-84, the IRS provided interim guidance on determining premium tax credits and advance credits for qualifying health care coverage under Sec. 36B or the individual shared-responsibility payment under Sec. 5000A, where regulations refer to the personal exemption deduction, which has been reduced to zero for tax years 2018 through 2025 by the legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 (Sec. 151(d)(5)(A)). Sec. 151(d)(5)(B), also enacted by the TCJA, provides that the reduction of the personal exemption deduction is not taken into account in determining whether a deduction under Sec. 151 is allowed or allowable. The notice provides two interim rules for purposes of Secs. 36B and 5000A: A taxpayer is considered to have claimed a personal exemption deduction (1) for himself or herself, if the taxpayer does not qualify as a dependent of another taxpayer under Sec. 152 for the year, and (2) for another individual, if the taxpayer is allowed a personal exemption deduction (taking into account Sec. 151(d)(5)(B)) for the individual and lists the individual's name and taxpayer identification number on Form 1040, U.S. Individual Income Tax Return, or Form 1040NR, U.S. Nonresident Alien Income Tax Return, that the taxpayer files for the year.

Suspension of moving expense reimbursement exclusion is clarified

In Notice 2018-75, the IRS stated that qualified moving expense reimbursements under Sec. 132(g) received in 2018 may be excluded from gross income if they are for qualified moving expenses incurred in connection with a move that occurred prior to Jan. 1, 2018, and would have been deductible as moving expenses under Sec. 217 if they had been paid directly by the individual before that date (but were not in fact deducted). The legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, suspended the exclusion for tax years 2018 through 2025 except for members of the U.S. armed forces on active duty who move pursuant to a military order and incident to a permanent change of station (Sec. 132(g)(2)). The legislation, however, did not address reimbursements made in 2018 for qualified moving expenses incurred in 2017.

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