The Tax Cuts and Jobs Act (TCJA) was passed in 2017 and affects your 2018 taxes. Here are the top eliminated deductions:
1. Personal Exemptions – The personal exemption of $4,050 per person on your tax return.
2. State and Local Income Tax over $10,000. If your state income tax withholding, sales tax paid, plus your real estate and personal property taxes exceed $10,000, you won't be able to deduct the excess.
3. Home Equity Loan Interest. Only the interest on loans used for home improvement is deductible, not money spent on vacations, debt consolidation, etc.
4. Moving Expenses. Only members of the Armed Forces can deduct expenses from a move of 50 miles or more.
5. Casualty, Theft and Disaster Losses. Only taxpayers who incur losses from a federally declared disaster area can deduct these expenses.
6. Investment Fees and Expenses. The fees you pay your broker and fees for safe deposit boxes or investment newsletters are not deductible.
7. Unreimbursed Travel and Mileage Expenses. This is a big one. Truckers, railroad workers, traveling salespeople and others can no longer deduct these expenses.
8. Home Office Deduction. Only self-employed workers can take this deduction, not employees who work from home.
9. Job Search Expenses. Books on occupations, classes to learn new skills and your LinkedIn account are no longer deductible.
10. Tax Preparation Fees. no more deducting software fees, tax preparation assistance fees or CPA fees.
For more information on these changes or help with your taxes call H & R Block for an appointment at 520-625-8732.