As it stands now, some changes for 2014 (Congress may enact last minute changes)
- No educator's $250 tax deduction.
An alternative is to "donate" your out of pocket expenses and potentially deduct them as itemized deductions.
- No state sales tax itemized deduction option.
You can only deduct state income taxes as an itemized deduction.
- No direct contribution from retirement accounts for qualified seniors.
Qualified seniors who donated funds directly from their retirement plan will now need to report the withdrawal from their account as income.
- No itemized deduction for mortgage insurance premium costs.
This may lower your itemized deductions for 2014.
- Elimination of the Tuition and Fees Deduction.
You will need to explore other education-related tax benefits to reduce the impact of this tax code change. Education credits for example.
- Changes in small business depreciation.
Bonus first year depreciation expense is no more. Also, the Section 179 expense option has been decimated, reduced from $500,000 to $25,000. A $475,000 change.