12 tax breaks that have already expired
A number of measures that cut taxes for individuals and businesses have already ended this year. Those include relief from the AMT and sales tax deductions.
This post is by The Associated Press.
While much of Washington is consumed by the debate over tax cuts scheduled to expire next year, a big package of tax breaks already expired this year.
Among the biggest, along with the cost to retroactively extend each one for 2012 and 2013:
Individual tax breaks
- Relief from the Alternative Minimum Tax. The tax is designed to ensure that wealthy people can't use tax breaks to avoid paying any federal taxes. However, it was never indexed for inflation, so Congress routinely adjusts it to keep it from imposing hefty tax increases on millions of middle-income families. Cost: $132 billion.
- State and local sales tax deduction. Taxpayers can take this itemized deduction instead of deducting state and local income taxes. It is geared for people who live in states without state income taxes: Alaska, New Hampshire, Tennessee, Florida, South Dakota, Washington, Nevada, Texas and Wyoming. Cost: $4.4 billion.
- A deduction of up to $4,000 for qualified higher education expenses: Cost: $4.2 billion.
- A tax credit for improvements to make homes more energy efficient. Cost: $2.4 billion.
- A provision that allows tax-free distributions from Individual Retirement Accounts, when used for charitable donations. People older than 70-and-a-half can make tax-free withdrawals of up to $100,000 a year from IRAs. Cost: $1.3 billion.
- A deduction for mortgage insurance premiums. Cost: $1.3 billion.
- A deduction of up to $250 for teachers who buy classroom supplies with their own money. Cost: $462 million.
- A tax credit for manufacturers and other businesses that invest in research and development. Cost: $14.3 billion.
- A tax break that allows restaurants and retail stores to write off the cost of certain capital improvements over 15 years instead of 39 years. Cost: $3.7 billion.
- An exemption that allows banks, insurance companies and other financial firms to shield the profits of foreign subsidiaries from being taxed by the U.S. Cost: $11.2 billion.
- A $1 per-gallon tax credit for businesses that use or sell biodiesel, a renewable fuel for diesel engines derived from vegetable oils and animal fats. Cost: $2.2 billion.
- A tax credit of up to $2,400 for businesses that hire people who receive benefits from a variety of government programs, including disability benefits and Temporary Assistance to Needy Families. Cost: $1.8 billion.
Source: Joint Committee on Taxation.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
More from MSN Money:
It's so amazing to me how easy the left gets control of the language and there by frames an issue in their favor. Taxes have a COST to the TAXPAYER. When taxes go up the COST is to the taxpayer increases. When taxes go down there is NO COST to government. It's money they don't receive. To say it COST the government when YOU get to keep more of YOUR OWN money and they get less is to say the money was theirs and they gave it to you.
If your income was fifty thousand a year, and you changed jobs and now earn forty, you didn't have to come up with ten thousand dollars and give it to anyone, you are just RECEIVING less money. AND, if you are wise, will adjust you SPENDING to accommodate the lower income.
Don't fall for the "cost the government" crap when their revenue is less for any reason. The government is an EXPENSE to YOU. And by the way, the people receiving more than they pay in are an EXPENSE TO YOU, not the government.
Copyright © 2013 Microsoft. All rights reserved.