Will you feel the effects?
On January 2, 2013, President Obama signed The American Taxpayer Relief Act into law. This bill is over 150 pages and retroactively extends many of the sunset provisions as well as permanently patching Alternative Minimum Tax (AMT). However, the following items were only extended until December 31, 2013, and without additional extension, will expire in 2014:
· Teachers - The $250 deduction for classroom expenses of elementary and secondary schoolteachers.
· Qualified Principal Residence Indebtedness - The income exclusion for cancelled qualified mortgage debt (up to $2 million).
· Mortgage Insurance Premiums - The payment of PMI premiums is treated as deductible qualified residence interest on Schedule A.
· State and Local Sales Tax - The election to claim an itemized deduction for state and local general sales tax in lieu of state income tax.
· Qualified Tuition Expenses - The above-the-line deduction for qualified tuition and related expenses.