New tax laws - Part 1

Now that we're in a new year, inevitably, there are tax law changes.  Some of the changes to expect (however, that's not to say that Congress won't make changes or pass new laws before the year is up):

Some allowances that have expired are:
1.  Write offs for state sales taxes

2.  College tuition

3.  That $250 allowed deduction that teachers and educators who were not reimbursed for out-of-pocket expenses for supplies

4.  The break that allowed people 70-1/2 and older to donate up to $100K per year from their IRA's to charity

Don't get too upset yet as these are likely to be reinstated retro to Jan. 1 but it is suspected that it may take awhile to do so.

Some others that went away are:

The $500 energy efficiency credit for home improvement items like biomass stoves, storm windows, and water heaters may not be back.  The good news is that the solar credits are still ok.

Some good news, though is that Congress has extended the 2% cut on the employee portion withheld for Social Security tax on  paychecks for the first two months of this year.  Self employeds also benefit the same way.  Medicare is not part of this break.  This being an election year, the period may be extended.  Stay tuned........