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Deadline Approaches to Take Care of Tax Breaks

SPRINGFIELD, Mo. -- We're days away from 2014, and with the new year comes the end to many of popular tax breaks.
SPRINGFIELD, Mo. -- We're days away from 2014, and with the new year comes the end to many of popular tax breaks.

December 31 marks the end to many credits and deductions benefitting a wide range of Americans.

Although we're only four days away until the year ends, it's not too late to take advantage of the savings.

Credits and deductions benefitting people from college students and teachers to homeowners and donors are scheduled to expire on December 31. But is it too late?

“Absolutely not,” says Joseph Tucker, Tucker & Company CPA. “I mean there's still time to do a number of things before year end.”

Among the multiple tax breaks are deductions for parents and students paying for college; a deduction for tuition and fees up to $4,000 is currently available.

To qualify, you'll need to pay tuition and fees for spring 2014 by December 31.

And for homeowners, mortgage insurance premiums can be currently deducted as resident interest. That, too, is set to expire.

From the home to school, elementary and secondary school teachers can currently qualify for up to $250 in deductions to pay for educational materials that weren't reimbursed by their schools.

And lastly, IRA distributions to charity:

Retirees can make non-taxable charitable donations of up to $100,000 directly from their IRA disbursements.

After December 31, the disbursement will be considered part of taxable income.

While it's not too late to opt into the credits and deductions, CPA Joseph Tucker says it's important to first analyze your financial situation.

“Again the first thing is discuss your situation with your tax advisor,” says Tucker. “Not everybody’s financial situation is the same. And so advice can't be one size fits all.”

From tuition and fee deductions alone, two million Americans have been able to save more than $4 billion.

So taxpayers who have taken advantage of these credits and deductions have been able to save a significant amount of money.

Although these tax breaks are scheduled to expire at the end of the year, Tucker said that there is a likelihood there will be an extension later in 2014 and those tax breaks would be retroactive

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