Tax Breaks that have Now Disappeared in 2014

Apart from the fact that the wealthy indeed pay more taxes in 2014, several tax breaks which made lives a whole lot easier for American taxpayers have now disappeared with 2013 and is not likely to be around next session, state tax attorneys. For instance, charities would no longer be fortunate enough to snatch up the proceeds of retirement plans. This was a provision that allowed seniors to make direct gifting worth up to $100,000 from their IRAs without having to report it as income. This provision has expired in 2013.

New Rules

Tax lawyers have also explained that teachers would have to forget about the tax deductions they were receiving on $250 worth of out of the pocket costs for classroom and school related supplies. And, as a tax attorney elaborated, the best thing about this deduction was the “above the line” connotation which meant that teachers could still claim their deductions even if they did not itemize.

A situation that was already bleak for most Americans just became bleaker. Now America has rising taxes and tax breaks that are going away. That is akin to a double taxation. And anyone who knows anything according to financial experts knows this is just another way for the federal government to expand and gain more control over American lives.

In addition, another “above the line” deduction appears to be lost. This one is related to fees and tuitions. There was deduction of op to a limit of $4,000 available for qualified tuitions and associated expenses that you could pay either for yourself or for your dependent family members. This too has disappeared in 2014.

More Tax Breaks Eliminated

The provision that was meant for allowing citizens to deduct local sales and state and use taxes in placed of local and state income taxes in Schedule A, is now gone as well! Tax lawyers observed that this provision benefitted taxpayers residing in the states where there are no income taxes and the income taxes are relatively low.

Clean Energy

Tax credits applicable for home improvement jobs carried out for energy efficient homes have also taken a tumble. However, credits applicable for solar heaters, solar powered electric equipment, and wind turbines would likely stick around until 2016. This is just after 60 Minutes hammered the clean tech ideas coming from the current administration.