Income
Tax Service For Individuals - Congress
has once again extended the “extenders,” a varied assortment of more than 50
individual and business tax deductions, tax credits, and other tax-saving laws which
have been on the books for years but which technically are temporary because
they have a specific end date. This package of tax breaks has repeatedly been
temporarily extended for short periods of time (e.g., one or two years), which
is why they are referred to as “extenders.” Most of the tax breaks expired at
the end of 2013, but now, in the recently enacted Tax Increase Prevention Act
of 2014, the extenders have been revived and extended once again. The package
generally renews the tax breaks for one year through the end of 2014, allowing
businesses and individuals to claim them on their 2014 returns. The list of
extended provisions includes several important tax breaks for individuals. I'm
writing to give you an overview of these key tax breaks that were extended by
the new law. Please call our office for details of how the new changes may
affect you.
The
extended provisions include:
... the
$250 above-the-line deduction for teachers and other school professionals for
expenses paid or incurred for books, certain supplies, equipment, and
supplementary material used by the educator in the classroom;
... the
exclusion of up to $2 million ($1 million if married filing separately) of
discharged principal residence indebtedness from gross income;
...
parity for the exclusions for employer-provided mass transit and parking
benefits;
... the
deduction for mortgage insurance premiums deductible as qualified residence
interest;
... the
option to take an itemized deduction for State and local general sales taxes
instead of the itemized deduction permitted for State and local income taxes;
... the
increased contribution limits and carryforward period for contributions of
appreciated real property (including partial interests in real property) for
conservation purposes;
... the
above-the-line deduction for qualified tuition and related expenses; and
... the
provision that permits tax-free distributions to charity from an individual
retirement account (IRA) of up to $100,000 per taxpayer per tax year, by
taxpayers age 70½ or older.
I hope
this information is helpful. If you would like more details about these changes
or any other aspect of the new law, please do not hesitate to call.
(651) 621-5777, (952) 583-9108, (612) 224-2476, (763)
269-5396
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