Fifty tax breaks expired on December 31.
Among some of the more common ones were: the $250 subtraction from gross income for teachers and educators, and energy efficient home improvement tax credits such as qualified insulation and doors and heating and cooling equipment.
A very significant break that expired was the Mortgage Forgiveness Debt Relief Act which underwater homeowners could use when they renegotiated their mortgage, had a short sale, or a foreclosure. Small business had a major hit with the elimination of the Sec179 allowance where they could immediately write off up to a half million in qualifying purchases. The limit is now $25,000.
Seniors didn’t get left out, either, they will no longer be able to contribute directly from their IRA. Now they have to make a withdrawal, pay the taxes on it and then contribute it to the charity. This will hurt those seniors who don’t have enough other expenses to use the Schedule A.