Year End is Coming, Have You Planned For It?
Author: Keith Huggett
Back in January, our Congress and President worked together to put into place the American Taxpayer Relief Act of 2012. With it, they extended several tax credits through the end of December 2013. Unless they act again, many credits will expire at the end of this year. Are you prepared for how this may affect your tax return? Some of the expiring credits include:
- Qualified Mortgage Debt- up to $2 million dollars (married filing jointly) or $1 million for married filing separately, could be excluded from income.
- Educator Expenses - Teachers, instructors, counselors, principals and aides for kindergarten through 12th grade, can deduct up to $250 of out-of-pocket costs.
- State & Local Taxes can be deducted in lieu of State Income Tax.
- Fringe benefits for mass transit were made equal to those of parking, allowing you to exclude from your income a certain amount for transportation.
- Making your home more energy efficient and "going green" allowed a credit of 10% of the amount paid for structural improvements to your home.
- If you have hired an employee in 2012 from a specific targeted group, you may qualify for the Work Opportunity Tax Credit (WOTC).
- Research & Development Credit
- Tuition & Fees - Individuals can claim an above-the-line deduction for tuition and fees for qualified higher education expenses.
- The 100% exclusion on the gain from the sale of small business stock has been retroactively reinstated and extended through December 31. 2103.
