Tax Deductions Extended by Fiscal Cliff - KTVN Channel 2 - Reno Tahoe Sparks News, Weather, Video

Tax Deductions Extended by Fiscal Cliff

Posted: Updated:

As the New Year rolled in and lawmakers in Washington hammered out their solution to avoiding the fiscal cliff, they added in a few enticements to help taxpayers through this next year and beyond.

The most far-reaching was to boost the minimum tax exemption retroactively and to index future exemptions to keep pace with inflation.

Why is that so big? It gives 26-million Americans some relief and some certainty about the future and that stability is a big deal in this economic climate.

Some of the other deductions that will make a difference to most Nevadans include continuing the tuition and feed deduction for those in college or who have students in college. And educators can still deduct $250 a year on school supplies.

"That is a big one," says Linda Hagen who prepares taxes for H&R Block in Reno. "There are a lot of teachers here and they depend on that."

"A lot of people also take money out of their IRAs to make contributions to charities. It's helps them cut their taxes and help the charities. It was set to stop this year, but it will continue. So that one will affect a lot of Nevadans and a lot of charities here," Hagen added.

The other deduction she highlighted was for those who have gone through foreclosure. Without the fiscal cliff deal, they would have not only gone through losing their homes but also paid taxes on that loss. That was rectified.

And her most important tip was to be prepared and file early. H&R Block on South Wells has already begun preparing tax forms for those who have received their W2's and they expect to file close to 5,000 returns before the deadline.

For more information, go to http://www.irs.gov/

Written by Erin Breen

  • Most Popular StoriesMost Popular StoriesMore>>

  • Multistate Outbreak of E. coli in Romaine Lettuce

    Multistate Outbreak of E. coli in Romaine Lettuce

    Friday, April 20 2018 4:54 PM EDT2018-04-20 20:54:44 GMT

    A warning from the CDC is urging people to be cautious of eating romaine lettuce after around 50 people were infected by E. coli bacteria.

    More >>

    A warning from the CDC is urging people to be cautious of eating romaine lettuce after around 50 people were infected by E. coli bacteria.

    More >>
  • Multiple People Hospitalized After Three-Vehicle Crash

    Multiple People Hospitalized After Three-Vehicle Crash

    Friday, April 20 2018 7:11 PM EDT2018-04-20 23:11:42 GMT
    Courtesy of RPDCourtesy of RPD

    UPDATE: The Reno Police Department has confirmed that alcohol was involved in a three-vehicle crash that happened on Wednesday, April 4 2018.

    More >>

    UPDATE: The Reno Police Department has confirmed that alcohol was involved in a three-vehicle crash that happened on Wednesday, April 4 2018.

    More >>
  • Things 2 Do This Weekend

    Things 2 Do This Weekend

    Friday, April 20 2018 2:44 PM EDT2018-04-20 18:44:39 GMT

    Whether you have a hunger for some crab, a love for Mother Earth or just want enjoy a colorful run for a good cause... This week's Things 2 Do will offer something that hits the spot. 

    More >>

    Whether you have a hunger for some crab, a love for Mother Earth or just want enjoy a colorful run for a good cause... This week's Things 2 Do will offer something that hits the spot. 

    More >>
Powered by Frankly
All content © Copyright 2000 - 2018 Sarkes Tarzian, Inc. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.