Expiring Tax Provisions

There are 57 tax provisions set to expire on December 31, 2013, Many taxpayers anticipate that these expiring provisions are going to be retroactively reinstated
Some popular ones that will effect some taxpayers are: Classroom Expenses Deduction for teachers, principals, and other K-12 educators can deduct up to $250 of their job-related expenses as an above-the-line deduction. This deduction expires at the end of 2013. For 2014, educators will be able to deduct their classroom expenses only as part of the employee business expense itemized deduction.

There are 57 tax provisions set to expire on December 31, 2013, Many taxpayers anticipate that these expiring provisions are going to be retroactively reinstated
Some popular ones that will effect some taxpayers are:
Tuition and Fees Deduction - The above-the-line deduction for college tuition expires at the end of 2013. For 2014, both the Lifetime Learning Credit and the American Opportunity Credit will be available for college students.

Deduction for Mortgage Insurance Premiums - Homeowners can deduct the cost of mortgage insurance premiums as part of their deduction for mortgage interest. However, this deduction expires at the end of 2013.

Debts that are forgiven or canceled are generally considered taxable income. A notable exception for the years 2007 through 2013 has been available for individuals whose mortgage debt is canceled as a result of a foreclosure, short sale or mortgage restructuring. In those cases, the mortgage debt forgiveness can qualify to be exempt from the income tax.
This special provision expires at the end of 2013. For 2014, mortgage debt that is canceled by a lender as part of a loan restructuring or foreclosure or short sale will be taxable, unless other exception applies.

Individuals can deduct state sales tax in lieu of the deduction for state income taxes, and is particularly valuable for taxpayers who live in states with no income taxes.

Businesses can expense the entire cost of equipment in the year of purchase under Section 179, rather than spreading out the cost over multiple years using regular depreciation. For 2013, businesses can expense up to $500,000 using Section 179. For 2014, the limit will be $25,000.

The Work Opportunity tax credit provides an incentive for businesses to hire specific types of employees, such as veterans and recipients of public assistance. Employers can qualify for a tax credit of up to $4,800 for each new disabled veteran hire.