Individual Tax Deductions and Extenders
Prior to the 2010 Tax Relief Act, various tax deductions and incentives were set to expire at the end of 2010, or had already expired at the end of 2009. Due to the 2010 Tax Relief Act, employees can continue to exclude up to $5,250 of education assistance provided by an employer through the end of 2012. Deductions for student loan interest and Coverdell Education Savings Accounts are extended through the end of 2012. State and local sales tax deduction, higher education tuition deduction, and teacher’s classroom expense deduction are all extended for two years and will expire at the end of 2011. The Joint Committee on Taxation estimates that the cost for the state and local sales tax deduction will total $5.5 billion. There is no individual projection for the other deductions and extenders.
If you have any questions or would like more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
