The AVMA sought to include a provision exempting Veterinary Medicine Loan Repayment Program awards from a steep withholding tax in a tax extenders bill that the Senate Finance Committee passed July 21. Unfortunately, it was rejected since the bill was limited to existing and/or expired tax provisions, not new ones.
The AVMA remains optimistic that the bill–the Veterinary Medicine Loan Repayment Program Enhancement Act (S. 440/H.R. 3095)–will eventually be passed. However, we were pleased to see that other important provisions related to higher education were included in the tax extenders bill, namely the extension of the above-the-line tax deduction for qualified tuition and related expenses and the Individual Retirement Account Charitable Rollover. The first allows taxpayers to deduct up to $4,000 from their income for qualifying tuition expenses paid for their self, their spouse or their dependent, while the second bill allows individuals who have reached the age of 70-and-a-half to donate up to $100,000 to charitable organizations directly from their Individual Retirement Account without treating the distribution as taxable income. Both tax provisions expired at the end of last year, but this legislation would extend them through Dec. 31, 2016.
For more information on the tax extenders bill, see the committee’s press release.