Pub. 4 2014-2015 Issue 5

14 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE TAD GOODENBOUR AND ROBERT CONNER BKD, LLP Withdrawals from the account will be tax-free if used to pay for qualified living expenses of the disabled, such as housing and education. Understanding Federal Tax Relief W ith few days remaining before the end of the 2014, Congress passed and the president signed the Tax Increase Prevention Act of 2014. The legislation provides taxpayers relief for 2014 by retroactively extending nearly all tax provi- sions that expired at the end of 2013. Here are some of the key individual and business pro- visions renewed through December 31, 2014: Individual Provisions • Above-the-line deduction up to $250 for certain unreimbursed expenses of elementary and secondary school teachers • Itemized deduction for state and local sales taxes in lieu of state and local income taxes • Above-the-line deduction for qualified tuition and related expenses o Up to $4,000 for taxpayers with ad- justed gross income (AGI) of $65,000 or less ($130,000 for joint filers) or up to $2,000 for taxpayers with AGI of $80,000 or less ($160,000 for joint filers) • Premiums for mortgage insurance de- ductible as qualified interest o Deduction phases out by 10 percent for each $1,000 of income exceeding $100,000 of AGI; the phase-out be- gins at $50,000 for married persons filing separate returns • Exclusion of discharge of principal residence indebtedness from gross income for individuals o May exclude up to $2 million of can-