Give Us A Break! Popular Tax Deductions & Credits Are On The Verge Of Disappearing
Tax breaks often provide financial relief for millions of tax-paying homeowners, students, teachers, and more. And these benefits, according to CNN Money, are on the brink of expiring unless Congress can agree on extending them. Here’s a peek at some endangered tax credits and how you can secure them.
Getting tax credit for tuition and other fees is a favorite among many college students. A maximum of $4,000 is offered to students and parents who are financing their higher education. According to H&R Block, two million Americans benefited from this tax break in 2010 — that same population may be affected if this deduction expires on December 31.
If you want to get a hold of this tax break before it expires, you’re needed to pay your spring 2014 tuition before December 31, Lindsey Buchholz suggests — a lead research analyst at H&R Block. In doing this, you’ll get your cash on your 2013 tax return.
Teachers, who often use their own money to supplement classroom materials, truly appreciate The Educator Expense Deduction. This tax break “aims to help teachers cover the cost of classroom supplies like notebooks, pens and paper that their school doesn’t reimburse them for,” CNN Money explains. Elementary and high school teachers qualify for up to $250 in credit per year.
If you haven’t already, it’s in your best interest to hurry up and buy your classroom supplies before the year ends.
Teachers and students, if they take mass transit, can also nab a tax credit for traveling. Commuters typically receive a $2,940 per year tax break — a bonus that will drop down to $1,560 in 2014.
Struggling homeowners are also in danger of losing the mortgage debt forgiveness tax break — a credit that excludes “any debt forgiveness they were granted from a bank when calculating their taxable income,” it adds. This isn’t good news for homeowners who get mortgage modifications after December 31; their tax bill will be thousands of dollars higher than usual.
And if you’ve made some adjustments to your home that is considered “energy-efficient”, such as new doors and windows, you may qualify for a $500 tax-free money. This tax break, however, is only available for taxpayers who haven’t collected $500 in the past.
Sure these tax breaks have a possibility of being extended if lawmakers come to a common ground, but don’t hold your breath! Congress recently couldn’t even agree on unemployment insurance, leaving 1.3 million in the dust. Stay tuned… we’ll be following this one.