IRS 2015 Tax Breaks: Some Good Cheer for the New Year

Well, here we are at the beginning of another 365-day cycle we refer to as a “year.” We all know what happens now.  We have to start thinking about paying the “tax man.”

New tax bills have recently been passed that will bring a little good cheer to some. And while the good cheer may not be as far-reaching as we’d like, for those it does affect every bit of relief is welcome.

At long last, teachers who buy classroom supplies with their own money get a much-needed tax break. Commuters also have some breaks to look forward to, whether you drive to work or take mass transit. You don’t have to itemize for either of these breaks. Teachers get to deduct up to $250. Commuters get to reduce their income by $250 if they drive to work and pay for parking. Mass Transit commuters can reduce their income by $130.

If you itemize, you’ll get relief in the form of a deduction for paying local and state sales taxes in lieu of income tax. This represents an enormous benefit to the residents of the seven states that have no state income tax.

Those paying for higher education will also find some relief in the new education tax break. Whether you are a parent paying for a child, yourself or your spouse, you will appreciate a deduction up to $4,000 in qualified tuition and books.”

Also, some homeowners and some retirees with IRAs will benefit. In addition, a new provision will benefit disabled adults.

Be sure to ask your tax preparer to go over all the new tax breaks in detail to find out if they apply to you.