With just days before the end of the year, Congress finally passed a bill extending over 55 tax breaks for individuals and businesses. The key items that were extended until 12/31/14 are:
Individuals
- Teacher's Credit ($250) - above the line deduction for teaching supplies
- Ability to exclude personal residence Cancellation of Debt Income (for foreclosures and short sales)
- Mortgage Insurance premiums (aka PMI) are deductible as mortgage interest
- Sales Tax is deductible (important for people in states without state income tax)
- Tuition Deduction
- Charitable contributions can count as RMDs from your IRA
- Multiple beneficial depreciation rules and limits
529-ABLE plans
Within the Tax Extender bill, Congress also passed the ABLE Act (Achieving a Better Life Experience) which allows Section 529 plans (tax deferred savings accounts) to be created for disabled individuals. These accounts cannot be created until the Treasury writes the rules for them in 2015, so more will be shared about this in a later blog. But early indications are these will be very beneficial for families trying to pay for care for disabled individuals.
Be sure to speak to your Enrolled Agent to see how these items can benefit you personally.
