The Tax Cuts and Jobs Act gave breaks to many, but those that itemized deductions will be surprised to find out that a lot of things they have been used to deducting are no longer allowed in 2018 and that might result in a tax sticker shock when their returns are prepared.
Here are a few of the gone but not forgotten:
- Moving expenses – this used to be able to be deducted even if you did not itemize.
- Personal exemptions – in the past you could deduct $4,050 per family member.
- Home equity loan interest – this is not longer allowed for new home equity loans and the total amount of home debt now cannot exceed $750,000.
- Casualty and theft losses – this is now limited to property damaged in disaster areas declared by the President.
- Charitable contributions – this has been tightened to eliminate the value of athletic tickets received for your donation, In the past this was not required.
- Job expenses – unreimbursed work expenses are no longer allowed.
- Tax preparation fees – these have been eliminated as well as tax software and preparation subscriptions and books.
- Investment advisory fees – many taxpayers who were previously able to deduct these as well as IRA fees and investment books and subscriptions are no longer able to deduct these costs.