Income taxes may not be the first thing on your mind during this time of year, but with end of the year coming to a close it is important to take a look at some of the income tax provisions that are set to expire at the end of 2013. Of course, Congress often extends these tax provisions and it may again this year. However, it is important to consider taking advantage of these tax provisions before the end of 2013.
First, the teacher’s classroom expense deduction is set to expire at the end of 2013. This deduction allows teachers who provide primary or secondary instruction to take a $250.00 deduction for school supplies they buy out-of-pocket and are not reimbursed.
Second, another deduction set to expire is the IRA distributions to charity. People older than 70 and a half must take minimum distributions from their IRA. This tax provision allows them to contribute that money to charity without it counting as income. This provision helps keep income low enough for an individual to qualify for other tax breaks that may have phase-out limits. A person can transfer up to $100,000.00 to a charity out of their IRA.
Finally, the tax credit for making your home “green” is set to expire. Homeowners who take advantage of this can receive a $500.00 credit for energy efficient appliances. The appliance must be installed and operational by December 31, 2013 unless this provision is extended.