Tax Tips

Will they be renewed?

Once again the following tax provisions have expired:

  • $250 educator expense deduction (school teachers who buy school supplies for their classes).
  • Tuition and fees deduction for higher education expenses (which helps college students or their parents).
  • Itemized deduction for state and local general sales tax (the option to deduct state and local sales taxes instead of deducting state and local income taxes is huge for those who live in states that don’t have an income tax, such as Florida and Texas).
  • Itemized deduction for mortgage insurance premiums.
  •  Qualified principal residence indebtedness exclusion for debt discharge income (up to $2 million; usually taxpayers have to pay income taxes on forgiven debt).

It’s expected that at the end of this year, many of these provisions will be extended once again. However, you may want to make increased estimated tax payments just in case.