Tom Reed continued his efforts to help working families by sponsoring a proposal designed to help those struggling to pay mortgages with tax relief. “We care about those who are struggling to make ends meet,” said Reed. “No one, who has gone through the process of receiving mortgage debt relief, should lose their home due to a federal tax bill. It’s just not right to undercut their efforts to stay on their feet.”
The proposal which was recently enacted into law as part of the Protecting Americans from Tax Hikes Act and the Omnibus spending bill, which would allow those who receive debt relief on their mortgage, often to avoid foreclosure, from having to count that relief as part of earned income on their federal incomes taxes at the end of the year.
“This bill is a great way to protect the hard-working families throughout our region that are may have fallen on tough times,” said Reed. “We stand with our friends and neighbors and this is one way we can do that.”
The provision was passed in late 2015 and encompasses debt that was forgiven in 2015 or will be forgiven in 2016, providing much needed relief for homeowners.
Reed went on to call for comprehensive tax reform given the positive impacts an overhaul would have on the economy as a whole. “Americans deserve a fairer, simpler tax code. Simplification will help our small businesses in particular, create the jobs of today and tomorrow and that’s something we can all support,” said Reed.
Federal Income tax filings are due Monday, April 18, 2016.