Certain items set to expire after 2013 have been extended to 2014
All of the key tax breaks are preserved, but expire for December 31, 2014:
- The $250 above-the-line deduction for certain expenses of elementary and secondary school teachers, also referred to as the eligible educator deduction.
- The deduction for state and local general sales tax as an itemized deduction, instead of deducting state and local income tax.
- The above-the-line deduction for qualified tuition and related expenses.
- The itemized deduction for mortgage insurance premiums as qualified residence interest.
- The exclusion of debt discharge income from gross income known as the qualified principal residence indebtedness exclusion.
- The provision for tax-free distributions up to $100,000 from an IRA if 70 1/2 or older and distributed to a qualified charitable organization.
It’s possible that some of these provisions may be extended into 2015, but for now, we probably won't know that until the eleventh hour of year-end 2015. Of course, this can make tax planning a difficult task.