The election is over, the people in their infinite wisdom have spoken…but here we are in mid-November and we still don’t know for sure what the tax laws are going to be for this year.
The problem is that a bunch of tax breaks and benefits have not been extended to 2014. These include:
–The $4,000 deduction for higher education tuition & fees.
–Deductions for state and local sales taxes.
–The ability to donate up to $100,000 from your IRA to a charity instead of taking a taxable required minimum distribution.
–The $250 deduction for classroom expenses for teachers in grades K-12.
–Credits of up to $500 for energy-efficient home improvements.
–The ability of businesses to write off more than $25,000 in new asset purchases.
The Wall Street Journal summarized tax breaks it thought Congress should address. A lame-duck session might do something about all of this. Or it might do nothing. But either way, until we know for sure what the tax laws are for 2014, the IRS can’t finish programming its computers, which means that this is likely to be another tax season in which taxpayers will be unable to file their returns in early or even late January.
Watch this space for an update.