With the end of the holiday season many people turn their attention to the tasks that need to be addressed in the first part of the new year. For most one of those tasks includes completing an income tax return. These individuals may be able to take advantage of tax breaks that were extended last month by Congress. We will highlight some of those tax breaks in today’s post.
Some of the extended breaks concern homes. For example, homeowners who have to pay for mortgage insurance and itemize their dedications can deduct those premiums. In addition, those whose houses have been foreclosed upon or have sold their residence for a price that is less than what the owner owed can exclude the forgiven debt from their income.
There are deductions related to education as well. All filers who are paying for college or graduate school could deduct up to $4,000 of the amount paid for school fees, tuition and certain related expenses. There are certain limitations that apply. On the other end up the spectrum, teachers who use their own money to purchase classroom supplies can deduct a maximum of $250 for those costs.
Those who commute for work could also take advantage of the tax breaks. Both those who drive their own vehicles as well as those who utilize mass transit could be eligible to reduce pre-tax income by $250 and $130 each month respectively.
When it comes to matters related to income taxes few things are straightforward. This means that mistakes in trying to use the tax breaks could occur. When they do, many find it helpful to seek legal assistance from a tax lawyer.
Source: CNN, “The 2014 tax breaks you'll be able to take,” Jeanne Sahadi , Dec. 16, 2014