8 Tax Breaks expiring before the year ends
POSTED: Tuesday, November 5, 2013 - 6:52pm
UPDATED: Wednesday, November 6, 2013 - 1:33pm
TYLER, TEXAS (KETK) — Our country is facing many decisions before the year ends, and one of those is tax policy.
You better move on any sort of tax break right now.
There are eight tax breaks which will be expiring before the year ends.
Experts we spoke to tell us, there are only few that will really impact East Texans.
When is comes to tax planning, there are some things to consider.
"Some of these tax laws that are going away are going to really really hurt not only people but our economy as well," says Maureen Parkilll, CPA of Liberty Tax Service.
Local CPA's we spoke to say,only a few that apply to East Texas and Texas.
Here are the provisions.
1.)Teachers' classroom expense deduction.
"This is sad, no longer will a teacher or an educator be able to deduct their $250, that the IRS has allow them to deduct on their taxes," says Parkhill.
2.) Elimination of cancellation of debt.
"They're not forgiving the debt and also becomes income to you and you have to pay taxes on it," says Parkhill.
3.) Mortgage insurance premiums.
"So that deduction which is interest is going away after this year," says Parkhill.
4.) IRA distributions to charity.
"Where you would give directly from an IRA to a charity if you're over the age of 70 and a half," says Barbara Bass, City of Tyler Mayor and CPA of Gallob, Morgan & Peddy Financial Services.
5.) State and local sales tax.
"We want to make sure anyone who itemizes in Texas this year gets their sales tax deduction," says Bass.
Bass says, this is a huge deduction since we don't have income tax.
Then we the other provisions:
6.) Transit benefits.
7.) Electric vehicles
8.) Remodeling your home for energy efficiency.
To see the full details of what each tax break entails click on the link: http://finance.yahoo.com/news/8-tax-breaks-expiring-end-170659429.html
We're told the Obama Administration and Congress pushed for these tax breaks, now they're taking them away.
"Keep talking about how they are for the middle income and lower income people," says Parkhill.
Experts say, it may be a good time for you to take advantage of them before it's too late.
Reports say, Congress still has time to extend the tax breaks before the year ends.