Analysis by The Tax Institute, the independent research arm at H&R Block (NYSE: HRB), shows tax benefits for individuals and small businesses that expired in 2013 could impact as many as one in six taxpayers. The Tax Institute estimates five of the more popular expired tax breaks benefiting individuals delivered more than $87 billion in tax benefits in 2013.<\/span><\/p>\n These expired tax benefits, that include the state and local sales tax deduction, mortgage insurance premium deduction, educator expenses deduction, tuition and fees deduction and the mortgage debt relief tax benefit, are often referred to as the \u201cextenders\u201d because they are part of proposed legislation that would extend up to 55 tax breaks that expired last year. The Tax Institute identified another two benefits as particularly significant to individuals and families \u2013 the nonbusiness energy property credit and the charitable IRA distribution provision.<\/p>\n \u201cUnless Congress renews the expired tax breaks, taxpayers of all types and across all incomes will lose tax benefits they\u2019ve used in the past,\u201d said Kathy Pickering, executive director of The Tax Institute at H&R Block. \u201cTaxpayers should prepare themselves and their tax returns for the changes that are ahead and look at other tax benefits for relief.\u201d<\/p>\n Affected taxpayers include:<\/p>\n Five times in the past 10 years, Congress has extended expiring tax provisions or retroactively renewed expired tax benefits anytime between November and January.<\/p>\n \u201cNo matter what Congress does or does not do, taxpayers will face changes this tax season,\u201d said Pickering. \u201cThese tax breaks expired more than 10 months ago, so either taxpayers will face the loss of these tax benefits or face late changes by Congress.\u201d<\/p>\n Taxpayers should prepare for the possibility Congress does not renew all of the expired tax benefits. Taxpayers should familiarize themselves with the expired tax breaks they have used in the past. Then they should identify alternative benefits, if any, they may use in their place. While some taxpayers may be eligible to claim alternative credits, they are not identical substitutes and have unique qualifications and restrictions.<\/p>\n For help navigating delays and changes to the tax code, taxpayers may follow news from The Tax Institute at https:\/\/newsroom.hrblock.com<\/strong><\/a> or speak to a tax professional by calling 1-800-HRBLOCK or visiting www.hrblock.com<\/strong><\/a>.<\/p>\n\n
Taxpayers should prepare for change<\/h2>\n
Key 2013 Numbers and Facts<\/h2>\n
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