Fiscal Cliff Could Cause Tax Deduction Changes
By: Alexandra Stone
Updated: December 13, 2012
The looming fiscal cliff could mean big changes to tax deductions in the coming year.
According to one local tax expert, the 2012 season shouldn't worry you. Yeshen Garner, an area manager with Jackson Hewitt says there are actually things to look forward to this tax season.
However, if no deal is reached and the fiscal cliff holds, the 2013 tax credit could see major changes.
"Next year, there are some credits that are going to be phasing out. They're going to be going back to original amounts," Garner said.
The child tax credit is one example. Families that have previously received $1,000 dollars per child would see that drop to $500 per child.
And deductions for charitable giving could also change. Already in 2012, the IRS will require documentation from charities for deductions more than $250. And there will be additional paperwork involved for charity related deductions more than $500.
According to one local tax expert, the 2012 season shouldn't worry you. Yeshen Garner, an area manager with Jackson Hewitt says there are actually things to look forward to this tax season.
However, if no deal is reached and the fiscal cliff holds, the 2013 tax credit could see major changes.
"Next year, there are some credits that are going to be phasing out. They're going to be going back to original amounts," Garner said.
The child tax credit is one example. Families that have previously received $1,000 dollars per child would see that drop to $500 per child.
And deductions for charitable giving could also change. Already in 2012, the IRS will require documentation from charities for deductions more than $250. And there will be additional paperwork involved for charity related deductions more than $500.
