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1) State and local sales-tax deduction – As in years past, taxpayers can choose to deduct the sales tax they paid in lieu of taking the deduction for state and local income taxes. Although this write-off is available to all, people in states that don’t have an income tax, such as Washington, Florida and Texas, are most likely to use it.
2) IRA charitable transfer – This popular provision allows owners of individual retirement accounts who are 70½ and older to give up to $100,000 of their IRA assets directly to charity each year. There’s no deduction for the charitable gift, but the donation doesn’t count as income—which can have benefits such as helping lower Medicare premiums. The donation of IRA assets to charity also can count toward the owner’s required annual withdrawals
3) Tax relief for mortgage-debt forgiveness – When a homeowner negotiates a reduction in the balance of a mortgage, the amount forgiven normally counts as income. This provision offers relief.
4) Tuition and fees deduction – This benefit allows a deduction of up to $4,000 a year for qualified expenses for college or other post-high-school education.
5) Educator-expense deduction – Another highly popular break, this allows millions of K-12 classroom teachers and others who are eligible to deduct up to $250 of unreimbursed expenses for classroom supplies.”
Time is short to take advantage of any of these, so talk to your financial advisor if you think one might be applicable to you.
