What are the some of the Tax Breaks eliminated in 2014?
There are several tax breaks that were lost in 2014, that many taxpayers will feel a pinch. The following are some of the ones that the will impact many taxpayers.
1. IRA owners aged 70 1/2 and older can no longer distribute up to $100,000 of IRA funds tax-free to charitable organizations. As of 2014, those distributions must be taxed as ordinary income to the account owner before they can go to charity. .
2. Effective 2014, homeowners can no longer deduct mortgage insurance premiums as interest.
3. Also, the mortgage debt exclusion has expired, which allowed underwater homeowners to exclude from taxable income the amount of any mortgage debt forgiveness granted to them by a bank.
4. Many of the tax credits available for energy-efficient home improvements also expired at the end of 2013, including those for home heating and cooling systems, insulation, windows and sealing (but, credits for certain plug-in electric vehicles and solar and wind technologies will remain in effect through 2016).
5. The higher-education tuition deduction, which allowed taxpayers to deduct between $2,000 and $4,000 of qualified tuition expense, expired at the end of 2013, as did the health care coverage tax credit.
6. Teachers are losing above-the-line deductions of up to $250 for unreimbursed educational expenses