Updated at: 01/09/2013 3:07 PM 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.
By The Associated Press
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