The following is a list of tax breaks that are scheduled to expire at the end of this year:
- The 2 percent cut to the employee share of social security tax.
- College tuition write-offs.
- The $250 write-off of teacher supplies.
- The write-off of state sales tax.
- The 100 percent bonus depreciation will be reduced to 50 percent for 2012.
- Direct payouts to charities of up to $100,000 a year from IRAs
- The research and development credit.
Most of these will be extended, though it may not happen until 2012. One exception is the depreciation bonus, which will most likely be allowed to expire due to budget constraints.
Also, I would be very surprised if the social security tax cut does not get extended before the end of the year. Allowing it to expire would result in every employee in the country getting a lower paycheck starting in January–not something any politician is willing to allow in an election year.
Like any good CPA, I need to add a disclaimer: Unfortunately, it is impossible to offer comprehensive tax info over the Internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.