Tax Breaks Facing Deadline; Need Congress' Extension

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Springfield - Paying for college tuition isn't easy, but it can lead to a tax deduction.

In fact, parents and students can deduct fees and tuition up to $4,000 from their taxes.

Teachers can claim up to $250  per year on items they buy for their classroom, but unless congress extends those tax credits, and others, could expire after December 31st.

Another tax break that may not be extended is one that allows struggling home owners to exclude any debt forgiveness they may have been granted by a bank when calculating their taxable income.  For six million Americans, that's bad news.

"For people that do lose their home to foreclosure, that income, the debt that is forgiven is taxable.  Someone could have tens or hundreds of thousands of dollars of tax liability based on losing their home," local CPA Allen Murphy told WAND News.

If you have questions, Murphy says calling a professional COA as early as possible is the best advice he can give.

 

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