Fifty-five tax breaks expired last night, including transit, tuition and business deductions. Meanwhile Obamacare taxes take effect today. The expired tax benefits are called “extenders” on Capitol Hill because they must be renewed each year or they expire, according to the Tax Foundation. Congress left Washington for the holiday break without renewing them.
One of the most talked-about extenders to expire is the tax subsidy for riding mass transit, which dropped from about $245 a month to $130 a month. (The subsidy for parking remains $250.) Sen. Charles Schumer, D-N.Y., estimates that 700,000 New Yorkers claim the transit deduction. He tried unsuccessfully to get Senate approval to renew the deductions as a stand-alone item before the break.
Measures that are renewed in January could be made retroactive to today. Schumer said the transit subsidy is more difficult than other expired extenders to make retroactive. Other tax breaks that expired won’t be claimed until individuals and businesses file their 2014 tax return.
Here’s a summary from the Affordable Care Act Charles Schumer extenders Obamacare Tax Foundation