While it’s the time of year to be working on your 2013 tax returns, it is never too early to get your financial tax plan in order for 2014. As you gather your information for your 2013 returns, be sure to take note of some of the popular federal tax breaks that disappeared when the calendar clicked to 2014.

We’ve pulled together a list of a few notable tax credits and deductions that are no longer available—or that have been significantly reduced—for 2014.

Tax-Free Treatment for Forgiven Principal Residence Mortgage Debt

For federal income tax purposes, cancelled debts generally count as taxable cancellation of debt (COD) income. However, a temporary exception applied to COD income from cancelled mortgage debt that was used to acquire a principal residence. Under the temporary provision, up to $2 million of COD income from principal residence acquisition debt that was cancelled between 2007 and 2013 was treated as a tax-free item for federal income tax purposes.

Deduction for Home Mortgage Insurance Premiums

In 2013, eligible taxpayers were allowed to treat qualifying personal residence mortgage insurance premium amounts as deductible home mortgage interest.

$250 Deduction for Teachers’ School Expenses

Teachers and other personnel at K-12 schools were allowed to deduct up to $250 of school-related expenses they paid out of their own pockets in 2013, regardless of whether they itemized or not.

Charitable Donations from IRAs

Individual retirement account (IRA) owners who had reached age 70 1/2 by December 31, 2013 were allowed to make charitable donations of up to $100,000 directly out of their IRAs in 2013. The donations counted as IRA required minimum distributions. So, charitably-inclined seniors who had more IRA funds than needed could have reduced their taxes by arranging for IRA donations to take the place of taxable required minimum distributions in 2013.

Deduction for Higher Education Tuition and Related Fees

In 2013, you could have deducted up to $4,000 (or up to $2,000 for higher-income taxpayers) for qualifying higher education tuition and related fees paid for you, your spouse, or your dependents.

$500 Energy-Efficient Home Improvement Credit

For 2013, taxpayers could have claimed a tax credit of up to $500 for certain energy-saving improvements to a principal residence.

Option to Deduct State and Local Sales Taxes

In 2013, individuals had the option to claim an itemized deduction for general state and local sales taxes instead of claiming an itemized deduction for state and local income taxes. This option was beneficial for taxpayers who live in states with no personal income taxes and taxpayers who pay only minimal state income taxes.

While there is always the chance that Congress will act on these expired tax breaks, it has failed to extend any of these tax credits so far.  It is best to check with your financial planner or tax advisor for additional details on how federal deduction changes may affect you as you prepare for year-end 2014.

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