Expiring Tax Benefits

Individual Income Tax Benefits Expiring 12/31/2011:

  • Personal tax credits applied against income tax no longer apply

  • Higher alternative minimum tax exemptions revert back to extraordinarily-low thresholds

  • $250 school teacher expense deduction ends

  • Mortgage insurance premium deduction expires

  • State and local sales tax deductions expire

  • Tuition and related fees deduction end

  • IRA to charity tax-free transfers stop

  • 2% Social Security tax reduction ends

Individual Income Tax Benefits Expiring 12/31/2012:

  • Marriage penalty equalization ends

  • Dividends taxed at capital gains rates removed, taxed at regular rates now

  • Capital gains low tax rates expires

  • Removal of itemized deduction phase out for higher income Americans

  • Removal of personal exemption phase out for higher income Americans

  • Child care deduction limit of $3,000 reverts to $2,400

  • Child credit reduces from $1,000 per child to $500 per child

  • Low 10% tax bracket for low income Americans is eliminated

  • Lower income tax rates and smaller brackets expires

  • Refundable adoption credit and reduced deduction

  • American Opportunity college education credit expires

  • Major reduction in earned income credits and refunds

  • Income tax exemption for debt forgiven on home foreclosures and repossessions

  • Deduction for student loan interest ends

  • Education IRA limit drops from $2,000 to $500

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