Tax Breaks That Expired

Last updated on December 19, 2012

Everybody is talking about the expiring of tax breaks in 2012, but there were many big and small tax breaks that have already expired. This year and the coming year will see additional taxes for some, but most taxpayers will be paying more because of the expiring of many tax breaks. Some individual taxes that have already expired are:

Relief from the alternative minimum tax that cost $132 billion. This tax break guaranteed that the rich and middle-income families do not use tax breaks to avoid paying any federal taxes.

A $2.4 billion tax credit for improvement that made homes energy efficient expired.

A provision costing $1.3 billion that allowed tax-free distributions from IRAs when used for making charitable donations expired.

A deduction for mortgage insurance premiums costing $1.3 billion expired.

State and local sales tax deduction in states that do not have state incomes taxes. Taxpayers used this itemized deduction instead of deducting local and state income taxes.

A deduction on expenses of students pursuing higher education expired. It cost $4.2 billion. Along with it, a deduction for teachers who buy classroom supplies with their money also expired. It cost $462 million.

Along with individual tax breaks, many business tax breaks also expired this year. Many more will expire by the end of 2012 and many will continue for a year or more.