A new tax reform was passed December 22, 2017, and the changes will go into effect on January 1, 2018. It’s important to consider their effects now so April doesn’t come as a surprise.

There were many changes that took place with this tax reform. If you are interested in learning more about the revisions, read “2018 Tax Reform—The Summary”.

Changes to the Standard Deduction

One major modification that will affect many taxpayers is the increase of the standard deduction. A comparison of the previous deduction and the new deduction can be seen below:

filing status

Note that most of these deductions have nearly doubled from previous years. Since deductions are used to lower taxable income, this change will be favorable to many. However, it will not be beneficial to those with itemized deductions greater than their standard deduction.

That’s not to say that those who itemize their deductions will not be affected by the tax reform, in fact, there were a handful of modification made to Schedule A.

Changes to Itemized Deductions

The biggest change, which will likely negatively impact many taxpayers, is that the total deduction for state and local income taxes is now limited to $10,000. Those who live in states with higher income, real estate, personal property, and sales tax will presumably note a higher impact of this change on their tax balance.

  • – For mortgages taken out after December 14, 2017, interest paid on the first $750,000 of mortgage debt is deductible, but anything over the limit is not tax deductible.
  • – Home equity loan interest paid after 2017 is no longer deductible unless it was used to improve your current home.
  • – The charitable contribution limit is now up to 60% (previously 50%) of your AGI.
  • – Previously, medical expenses needed to exceed 10% of AGI to be deductible. Under the new tax reform, medical expenses are deductible to the extent that they exceed 7.5%.
  • – Miscellaneous itemized deductions, such as tax preparation fees, investment management fees, and unreimbursed employee expenses, are no longer deductible. Casualty losses or theft losses (except in disaster areas) are also no longer deductible.

*Keep in mind that there are often additional rules to consider for taxpayers who file using the status married filing separately (MFS).

If you are interested in learning more about using itemized or the standard deduction, visit our article about the differences between the two types of deduction. Or call us to set up an appointment to freely talk to our experts about your financial concerns at 844-774-8829.

198 thoughts on “Changes to Tax Deduction under the New Tax Law”

  2. Jamel

    Wow, wonderful blog layout! How long have you been blogging for?
    you made blogging look easy. The overall look of your site
    is magnificent, let alone the content!

  3. Margarita

    Hi there to every body, it’s my first pay a quick visit of this
    web site; this website carries awesome and actually good information for readers.

  4. Martina

    A motivating discussion is definitely worth comment.

    There’s no doubt that that you ought to write more on this subject, it may not
    be a taboo subject but generally people do not discuss
    such issues. To the next! Best wishes!!

  7. real money mobile gambling

    Hi, i read your blog from time to time and i own a similar one and i was just curious if you get
    a lot of spam remarks? If so how do you reduce it, any plugin or anything you can recommend?
    I get so much lately it’s driving me crazy so any support is very much
    appreciated.

  8. real money gambling

    It is the best time to make some plans for the longer term and it is time to be happy.
    I’ve read this publish and if I may just I wish to suggest you
    some fascinating things or advice. Perhaps you can write subsequent articles
    referring to this article. I wish to read even more issues
    approximately it!

  10. Tamera

    Hello to all, how is everything, I think every
    one is getting more from this site, and your views are nice for new visitors.

  11. Geneva

    Hi all, here every one is sharing these kinds of experience, therefore it’s pleasant to
    read this weblog, and I used to visit this weblog daily.

  13. that ps4 games

    When someone writes an post he/she maintains the idea
    of a user in his/her brain that how a user can be aware of
    it. So that’s why this paragraph is amazing. Thanks!

  14. are ps4 games

    When someone writes an post he/she retains the plan of a user
    in his/her brain that how a user can be aware of
    it. Therefore that’s why this article is perfect.
    Thanks!

  15. ps4 games or

    Hi! I know this is kinda off topic however , I’d
    figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog article or vice-versa?
    My site goes over a lot of the same topics as yours and I think we
    could greatly benefit from each other. If you might be interested feel free to
    shoot me an e-mail. I look forward to hearing from you! Wonderful blog by the way!

  16. with ps4 games

    I was suggested this web site via my cousin. I’m now not positive whether or not this put
    up is written via him as no one else realize such targeted about my problem.
    You are amazing! Thanks!

  37. is ps4 games

    Woah! I’m really enjoying the template/theme of this site.
    It’s simple, yet effective. A lot of times it’s hard to get that “perfect balance” between usability and
    visual appearance. I must say you’ve done a amazing job with
    this. Also, the blog loads super quick for me on Chrome. Outstanding Blog!

  61. 우리카지노

    https://amd1080.com/woori/
    Today, I went to the beach front with my children. I found a sea shell and gave it to my 4 year old daughter and said « You can hear the ocean if you put this to your ear. » She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

  101. hotshot bald cop

    Excellent pieces. Keep writing such kind of info on your site.
    Im really impressed by your blog.
    Hey there, You have performed a great job. I will definitely digg it and individually recommend to my friends.
    I am sure they will be benefited from this web site.

  123. http://tinyurl.com/

    Howdy! This blog post couldn’t be written much better!

    Reading through this article reminds me of my previous roommate!

    He continually kept talking about this. I most certainly will
    forward this information to him. Fairly certain he will
    have a great read. Thanks for sharing!

  127. http://t.co/

    Hi there, You have done a fantastic job. I’ll definitely digg it and
    personally recommend to my friends. I’m sure they will be benefited from this site.

  129. http://bit.ly/

    Thanks , I have recently been searching for information about this subject
    for a while and yours is the greatest I’ve came upon so
    far. However, what in regards to the bottom line? Are you positive about the source?

  132. cutt.ly

    State of Georgia government web sites and e-mail systems use “georgia.gov” or “ga.gov” on the end of the handle.

  138. best mortgage lenders in california for first-time buyers

    Howdy superb website! Does running a blog similar to this
    take a large amount of work? I’ve absolutely no understanding of coding but I was hoping to start my own blog
    in the near future. Anyhow, if you have any suggestions or techniques for
    new blog owners please share. I know this is off topic but I simply needed to ask.

    Thank you!

  156. Dev Casino Decazeville Kataloğu Nedir?

    Aldatan Eş, evlilikte en önemli değerlerden biri olan -dürüst-ü vurgular.
    Bir partner onu aldattığında, sonunda aileyi yok edecektir.
    Hikaye iki değersiz çift etrafında dönüyordu çapkın bir sosyal kadın ve onun mükemmel kocası ve hasta.

  158. Cara Bahisleri Dota 2 Lounge

    Kayıt olmadan ücretsiz çevrimiçi rulet oyna bu tür el sanatlarının kitlesel karakterini sağladıktan sonra, bulunan tutardan fazla ise bulunan tutarın tamamı.
    Buradaki odak noktamız özellikle yeni müşterilerimize
    sunulan ve ilk ödeme ile hak edilebilinen spor bahis bonuslarıdır, kayıt ol
    butonuna tıkladıktan sonra formdaki.

  160. Elmo Leachman

    I’ve been exploring for a little for any high-quality articles or weblog posts in this kind of area . Exploring in Yahoo I eventually stumbled upon this site. Studying this information So i’m happy to show that I’ve a very excellent uncanny feeling I came upon exactly what I needed. I so much certainly will make sure to don?t forget this web site and provides it a glance regularly.|

  162. Casino fraksiyonu 1848 ev nar ağacı her yıl ağaç

    Con la aplicación de Megabit puede consultar su estado de cuenta, ver el consumo de Internet además de las siguientes características: Consultar su estado de cuenta Visualizar su Consumo
    de Internet. Revisar sus Facturas en cualquier momento.
    Pagar sus Facturas. Reportar sus Pagos. Levantar un Ticket de Soporte Técnico.

  163. Jamal Gleicher

    Oh my goodness! Incredible article dude! Many thanks, However I am experiencing problems with your RSS. I don’t understand the reason why I can’t subscribe to it. Is there anybody having identical RSS issues? Anybody who knows the answer can you kindly respond? Thanks!!|

  164. Steven Fugueroa

    Hello it’s me, I am also visiting this web site on a regular basis, this web site is actually nice and the people are in fact sharing fastidious thoughts.|

  165. bit.ly

    Incoming claims are categorised based mostly on severity and are assigned to adjusters whose settlement
    authority varies with their information and experience.

  168. Kareem Honda

    Everyone loves what you guys tend to be up too. This kind of clever work and exposure! Keep up the fantastic works guys I’ve added you guys to blogroll.|

  169. Scarlett Majuste

    My brother suggested I might like this blog. He was entirely right. This post truly made my day. You cann’t imagine just how much time I had spent for this info! Thanks!|

  170. Jada Remenaric

    Do you mind if I quote a few of your posts as long as I provide credit and sources back to your weblog? My website is in the exact same area of interest as yours and my users would genuinely benefit from some of the information you present here. Please let me know if this alright with you. Thank you!|

  174. Billie Horabik

    After looking at a handful of the blog posts on your site, I seriously appreciate your technique of blogging. I book marked it to my bookmark site list and will be checking back soon. Please check out my web site too and let me know your opinion.|

  175. Duncan Legg

    Howdy! This post couldn’t be written any better! Reading this post reminds me of my old room mate! He always kept talking about this. I will forward this post to him. Fairly certain he will have a good read. Thanks for sharing!|

  177. Lonna Arreaga

    You really make it seem so easy with your presentation but I find this matter to be actually something which I think I would never understand. It seems too complex and very broad for me. I am looking forward for your next post, I will try to get the hang of it!|

  179. Glynda

    This is the right website for anyone who hopes to find out about this topic. You realize a whole lot its almost tough to argue with you (not that I really will need to…HaHa). You definitely put a fresh spin on a subject that has been written about for a long time. Wonderful stuff, just excellent!|

  188. bitcoincasino

    Looking at this article, I miss the time when I didn’t wear a mask. bitcoincasino Hopefully this corona will end soon. My blog is a blog that mainly posts pictures of daily life before Corona and landscapes at that time. If you want to remember that time again, please visit us.

  194. bit.ly

    Furthermore within the next century, maritime insurance developed broadly, and premiums were intuitively diversified with risks.

Leave a Comment

Your email address will not be published. Required fields are marked *