Q. What new 2014 tax breaks I could use?
A. The following personal tax breaks are not new, because they were all available in 2013, but until the Congress passed the Tax Increase Prevention Act of 2014 in December, there were NOT available for 2014. But now they are!
Higher education tuition deduction
This write-off could be worth $4,000 or $2,000, it expired at the end of 2013.
Now it is available again for 2014!
State and local sales taxes deduction
If you pay little or no state income tax, you usually have the option to claim an itemized state and local sales tax deduction, but it expired at the end of 2013.
Now it is available again for 2014!
Year-end planning tip: buy that big-ticket item you have wanted to buy now, so you can deduct the extra sales taxes on your 2014 return.
Charitable donations from IRAs
If you have reached age 70½, and have too much money on IRA, you usually could make a tax-free charitable cash donations of up to $100,000 directly out of IRA, it would be counted as IRA required minimum distribution (RMDs). It expired at the end of 2013.
Now it is available again for 2014.
Year-end planning tip: make that IRA donation before year-end so you can avoid taxable required minimum distribution.
A. The following personal tax breaks are not new, because they were all available in 2013, but until the Congress passed the Tax Increase Prevention Act of 2014 in December, there were NOT available for 2014. But now they are!
Higher education tuition deduction
This write-off could be worth $4,000 or $2,000, it expired at the end of 2013.
Now it is available again for 2014!
State and local sales taxes deduction
If you pay little or no state income tax, you usually have the option to claim an itemized state and local sales tax deduction, but it expired at the end of 2013.
Now it is available again for 2014!
Year-end planning tip: buy that big-ticket item you have wanted to buy now, so you can deduct the extra sales taxes on your 2014 return.
Charitable donations from IRAs
If you have reached age 70½, and have too much money on IRA, you usually could make a tax-free charitable cash donations of up to $100,000 directly out of IRA, it would be counted as IRA required minimum distribution (RMDs). It expired at the end of 2013.
Now it is available again for 2014.
Year-end planning tip: make that IRA donation before year-end so you can avoid taxable required minimum distribution.
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