The Tax Increase Prevention Act of 2014

Individual Extenders

The TIPA renews the individual extenders through 2014.

These extenders include:

• State and Local Sales Tax Deduction has been extended through 12-31-2014.
• Higher Education Deductiion has been extended through 12-31-2014 and is subject to phase out limitations
• Teacher’s Classroom Expense Deduction of $250.00 for qualified professional grades K-12 have been extended through 12-31-2014.
• The Mortgage Insurance Premium Deduction has been extended through 12-31-2014
• The Mortgage Debt Exclusion on a principal residence of up to 2 million dollars has been extended through 12-31-2014

Here is what happened on January 1st 2015 as part of the Affordable Care Act also known as Obamacare.

Top Medicare Tax went from 1.45% to 2.35%

Top Income Tax bracket went from 35% to 39.6%

Capital Gains Tax went from 15% to 28%

Dividends Tax went from 15% to 39.6%

Estate Tax went from 0% to 55%

Also Health Insurance went up for individuals across the board. Now individuals that do not qualify for assistance are paying approximately $100,00 per month more than they paid last year, even if they did not use or abuse their insurance.