The most important thing you can do this year for your tax planning is to keep an eye on Congress to see whether lawmakers manage to extend popular tax provisions before the end of 2015. Some notable provisions must be extended in order to allow:
- Taxpayers aged 70½ and over to make tax-free charitable contributions from individual retirement accounts (IRAs);
- Businesses to deduct up to half of eligible equipment placed in service this y...ear;
- Teachers to receive an above-the-line deduction for $250 in classroom expenses;
- Students and parents to receive an above-the-line deduction for tuition expenses;
- Companies to receive a credit for qualified research expenses; and
- Taxpayers in states without an income tax – like Washington, Texas and Florida – to deduct state sales taxes.