Seattle Indian Community - SeattleIndian.com
| | |
 


 

Tax Reform Reminder: Changes to Itemized Deductions

Money
Contributed by : Mukesh Makker

Share With Your Friends

Add To My Favorite
Under tax reform, many tax laws changed, including those affecting itemized deductions. While many people no longer need to itemize due to the nearly doubling of the standard deduction, certain taxpayers whose total deductions exceed the standard deduction may still want to consider itemizing. As a reminder, here is quick summary of how tax reform affected four itemized deductions used by many taxpayers in prior years:

1. Medical and Dental Expenses. Taxpayers can deduct the part of their medical and dental expenses that are more than 7.5 percent of their adjusted gross income.

2. State and Local Taxes (SALT). The law limits the deduction of state and local income, sales, and property taxes to a combined total deduction of $10,000. The amount is $5,000 for married taxpayers filing separate returns. Taxpayers cannot deduct any state and local taxes paid above this amount.

3. Home Equity Loan Interest. Taxpayers can no longer deduct interest paid on most home equity loans unless they used the loan proceeds to buy, build or substantially improve their main home or second home.

4. Miscellaneous Deductions. The new law suspends the deduction for job-related expenses or other miscellaneous itemized deductions that exceed two percent of adjusted gross income. This includes, among other things, unreimbursed employee expenses such as uniforms, and union dues.

If you have any questions or would like more information about itemized deductions after tax reform, don't hesitate to call.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.


Website: https://taxmaker.com/archive.php?archive=072019#7

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

Premium Advertiser
Accountants, CPA, Tax Advisors - Accounting and Tax Professionals, Inc, Mukesh Makker, CPA



This is an advertisement
My Business:
Accounting and Tax Professionals, Inc
Bellevue

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

Avoid Refund Delays by Renewing Expiring ITINs Now
Higher Ed Institutions Affected by Proposed Regulations
List of Preventive Care Benefits Expanded for HSAs
Two New Tax Scams to Watch out For
Who Can Represent You Before the IRS?
View All Articles

Featured Contributors


Praveen Nair

Ananya Kiran

Darshan Goswami
Darshan Goswami

Rima Arora

Anu Peshawaria

Shruti Sadolkar
Shruti Sadolkar

Vivek Wadhwa

Christine Dunbar

Tahmina Watson
Tahmina Watson

Latest Articles

Avoid Refund Delays by Renewing Expiring ITINs Now by Mukesh Makker
Higher Ed Institutions Affected by Proposed Regulations by Mukesh Makker
List of Preventive Care Benefits Expanded for HSAs by Mukesh Makker
Two New Tax Scams to Watch out For by Mukesh Makker
Who Can Represent You Before the IRS? by Mukesh Makker
View All Articles