Expiring Tax Provisions - Individuals
It looks like your social security taxes will rise on Feb 29, rather than Jan 1, from 4.2% to 6.2%, unless Congress finds a way to kick this can even further down the road. Don't hold your breath.
Alternative minimum taxes (AMT) will bite even more people. Beginning Jan 1, most nonrefundable credits can not offset the AMT. Also, the "AMT patch" amounts expire, and the AMT exemption reverts to its statutory amount: $45,000 for married individuals filing jointly, and $33,750 for unmarried individuals; and those amounts phase out when AMT income exceeds $150,000 (joint) or $112,500 (single).
Transit pass and parking benefits. The maximum amount an employee will be able to exclude from income for employer-provided transit passes and transportation in a commuter highway vehicle for 2012 will be $125 per month, down from $230 per month in 2011.
Also gone on January 1, 2012:
Option to deduct state and local sales tax instead of state income taxes on Schedule A;
The expanded adoption credit and adoption assistance program amounts;
The deduction of up to $250 for certain elementary and secondary school teacher expenses;
Deductibility of mortgage insurance premiums as interest;
The above-the-line deduction of up to $4,000 for qualified tuition and related expenses;
The tax-free treatment of charitable distributions from IRAs; and
The nonbusiness energy property credit.
The temporary 100% exclusion of gain from the sale of certain small business stock under Sec. 1202(a) also expires after Dec. 31.