Top tax breaks for individuals
- Article by: The Associated Press
- Associated Press
- January 10, 2013 - 1:52 AM
U.S. tax law is filled with so many credits, deductions and exemptions that Americans will be able to reduce their tax bills by about $1.1 trillion this year, according to congressional estimates.
The biggest tax breaks, and the amount they will save taxpayers this year:
_Employer contributions toward workers' medical insurance premiums and medical care are not taxed: $181 billion.
_Retirement plan contributions and earnings are not taxed: $165 billion.
_Mortgage interest deduction: $101 billion.
_Lower tax rates on long-term capital gains and qualified dividends: $84 billion.
_Deduction for state and local taxes: $69 billion.
_Deduction for charitable contributions: $46 billion.
_Most Social Security and veterans' benefits are not taxed: $45 billion.
_Interest on tax-exempt state and local government bonds is not taxed: $26 billion.
_When someone dies, the capital gains on his investments is not taxed: $24 billion.
_Income from some life insurance products is not taxed: $23 billion.
Sources: National Taxpayer Advocate; Joint Committee on Taxation.
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