Some 50 tax breaks expired at the end of December 2013 without being extended….and don't call them a do nothing Congress.
While most of them are incomprehensible business tax deductions (research and development credit and bonus depreciation), some directly affect individuals. This has happened before, and they have always been extended retroactively. This time, our political leaders have told us don't expect action until after the November elections. However, time is running short and you never know with the current state of politics in Washington.
In the meantime, everyone is in limbo.
Here are the big tax breaks for individuals that expired and we are hoping for an extension on.
• The deduction for state and local sales taxes.
• Above-the-line deduction of up to $4,000 for higher education expenses.
• Tax-free distributions from an IRA for charitable for taxpayers over 70.5.
• A $250 above-the-line deduction for school teachers for supplies.
• Parity for employer-provided mass transit and parking benefits ($250 a month, up from $130 a month).
• The ability to exclude a discharge of residential mortgage indebtedness from gross income.
• The deduction for mortgage interest premiums.