New Year? Of course there are - New Taxes! - Granite Grok

New Year? Of course there are – New Taxes!

Low taxes are the result of low spending

– former NH Gov Meldrim Thomson.

Well, as it seems to be their wont, our Legislators in DC just keep forgetting about that sage advice and instead, keep their own New Year’s tradition alive – “gifting” us with new taxes.  Some big, some small. CNN / Money as a short list of those that you may need to hurry up on before they go away:

  1. Tuition and fees: A deduction for tuition and fees of up to $4,000 is currently available to parents and students paying for college.
  2. Teachers’ expenses: The Educator Expense Deduction aims to help teachers cover the cost of classroom supplies like notebooks, pens and paper that their school doesn’t reimburse them for. Elementary and secondary school teachers can qualify for deductions of up to $250 per year, even if they don’t itemize.
  3. Mortgage insurance premiums: Currently, homeowners are able to deduct their mortgage insurance premiums as residence interest.
  4. State and local sales tax: In states without an income tax, like Florida and Alaska, taxpayers have been able to deduct state and local general sales taxes instead of taking the income tax deduction — but that won’t be an option next year unless Congress intervenes.
  5. Donations through your IRA: Retirees older than 70-and-a-half have traditionally been able to make non-taxable charitable donations of up to $100,000 directly from their IRA disbursements. But once this tax break expires, they will need to take the disbursement first, meaning it will be considered part of their taxable income.
  6. Energy-efficiency: It’s your last chance to get a credit of up to $500 if you made energy-efficient home improvements this year — including new windows and doors. To see if you qualify, visit EnergyStar.com or ask the company where you bought the items.
  7. Commuter costs: Currently, commuters who take mass transit like trains or buses to work are able to receive $245 a month (or $2,940 per year) in tax-free money toward those expenses. But this perk is scheduled to expire January 1, at which point commuters will only be able to write off just $130 per month — $1,560 a year.
  8. Mortgage debt forgiveness: A tax break that has been in effect since 2007 allows struggling homeowners to exclude any debt forgiveness they were granted from a bank when calculating their taxable income.

Total: $27 – 30 Billion per year.

Also remember that the medical deduction goes from 7.5% to 10% – GIVEN the enormous deductibles that are coming with Obamacare, some of us might be able to take advantage of it.  However, remember that Obamacare itself is going to be putting more taxes on us all – on the insurers and on the individual policies they write.  Now, if you are a Big Government / Statist, you’re happy – more money into the coffers that rightfully belongs to “us”.  Me?  Once again, if Government would stay within its bounds, this nickle n’ diming of citizens out of their own earned money is both a symptom and a disease – not much better than a drunk demanding more and more.

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