Congress renews tax breaks for 2014

A challenge in tax planning is that you don't know what Congress will do with taxes in the future. Its hard to say what taxes will look like for 2015 when we weren't sure what taxes would look like for 2014 until yesterday (with 2 weeks left in the year!) Congress renewed a series of extenders (tax breaks) for a one year term yet again - ensuring very little change from last year. The items which didn't make the cut don't affect the individual or the average small business.

One new interesting provision is in place - ABLE accounts. These will work like 529 accounts for expenses for qualified disabled individuals. Contributions will not be deductible, but the accounts can grow tax-free if used for qualified expenses.