More than $1 trillion of the estimated $1.4 trillion in so-called tax expenditures this year will benefit individuals, according to a new analysis from the Tax Policy Center, CNNMoney reported.
By contrast, $148 billion in tax breaks will go to corporations. That represents less than half the cost of health-related tax expenditures -- the No. 1 category, costing an estimated $383 billion.
Housing is the next biggest category, accounting for $255 billion of the $1.4 trillion. Among the biggest players here are the mortgage interest deduction, the property tax deduction and the tax-free treatment on the first $250,000 in capital gains ($500,000 for married couples) on the sale of a home.
Third up are the $160 billion in tax breaks offered for pensions and other types of income security, such as the deduction for 401(k) contributions and the tax-free treatment of Roth IRA withdrawals.
And No. 4 is the $117 billion tax break on investment income, primarily capital gains and dividends, which are often taxed at a lower rate than ordinary income.