How do you avoid the fiscal cliff without raising taxes? Some lawmakers say it can be done by limiting tax deductions.
One proposal would do away with the homeowner's mortgage interest deduction.
So how will this affect you and your family?
If lawmakers choose to eliminate certain tax deductions, it would mean homeowners across the nation would lose hundreds of dollars in their tax refund for what they pay in interest on their mortgage.
It's money many people have come to count on and don't want taken away.
"It's a horrible thing. A lot of people go into debt anticipating they will get that refund to pay off previous bills, we can't take away hundreds of dollars in taxpayer dollars either we need that money!" said Amanda Gibbs.
Amanda Gibbs, like many mothers across the tri-states, aims to do her best to provide for her family, and says every dollar she can get to do that helps, including the refund she gets for her home mortgage.
"I'm a spender I don't save the money, it's something that you look forward to. You have this 'x' amount of money this is something we've always wanted and now we can go get that item or that thing or take that trip that we wanted to take," said Gibbs.
Tera Schultz, a tax preparer with H&R Block in Quincy, says many homeowners depend on this write off.
She sees countless people every day who can't afford to lose it.
"Whether it's repairs improving their home and making it better, maybe it goes to charity maybe it goes to medical expenses, there are a lot of things that people do with that money, that now they don't have that freedom anymore," said Schultz.
Schultz says if the government decides to do away with home mortgage tax returns, and one group in particular would be hit the hardest.
"It's the solid middle class families that will really get hurt most, the families that are buying the homes in the good school districts and the families that are working to put their kids through college, those are the families that will really get affected most," said Schultz.
Tera Schultz has some advice for homeowners to lessen the sting if this deduction gets taken away: and that's to not depend on this money, as many families do. She says plan ahead in your budget as if the money won't be there.
But as of right now, there's no progress in talks aimed at finding a solution to avoiding the fiscal cliff.
All content © Copyright 2000 - 2014 WorldNow and WGEM. All Rights Reserved.
Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Administrative Assistant Kathy Woodworth at 217-228-6617. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at firstname.lastname@example.org.