The following tax incentives expired at the end of 2011. These incentives include the State/Local Sales Tax deduction, the Mortgage Insurance Premiums deduction, School Teacher Expenses and Qualified Charitable Distributions from IRAs.
· The State/Local Sales Tax deduction is an election in lieu of deducting state income taxes. It is mostly used by taxpayers residing in Washington, Texas, Nevada, Florida and other states where there is no income tax. Also, it only applies to taxpayers who itemize.
· The Mortgage Insurance Premiums deduction applied to homeowners who made down payments of less than 20% of their homes’ value and were required to carry private mortgage insurance (PMI). These premiums were deductible similar to mortgage interest.
· School Teacher Expenses provision provided a $250 deduction for teachers, counselors, principals and aids for books, supplies and other materials.
· Qualified Charitable Distributions provision was very popular among taxpayers. It allows individuals who are over age 70½ to make a direct charitable gift from their IRA in lieu of taking a required minimum deduction.
