Our wonderful lawmakers in Washington failed to extend many popular tax breaks beyond 2011! Gone for the moment are write-offs for state sales taxes, college tuition and up to $250 of teachers’ classroom supplies.
We have in place the higher AMT exemptions and the AMT offset for personal tax credits such as tuition and dependent care were allowed to expire, as was the special provision allowing folks age 70½ or older to donate up to $100,000 a year from their IRAs directly to charity.
It is expected that these breaks can and will be reinstated for 2012, retroactive to Jan. 1, but for now they are not. As they dither, passage may be delayed until the end of the year.
A personal favorite of my clients is the $500 credit for energy efficient home improvements such as storm windows. Also biomass fuel stoves and water heaters has lapsed, and the return is questionable to all of these.