The Tax Cuts and Jobs Act went into effect January 1, 2018. That means that the changes made won’t affect your 2017 tax filing in April 2018. Many of the deductions available to individual taxpayers survived the new tax law and will still be available to you when you file in 2019. Some have been modified. Here’s a checklist of those tax deductions:
Deductions That Have Not Been Changed
- Contributions to health savings accounts (HSAs)
- Interest on student loans (up to $2,500)
- Expenses of K-12 educators (up to $250 for unreimbursed classroom supplies)
- Expenses of self-employed workers (including self-employment taxes, health insurance, and retirement plan contributions)
- Contributions to traditional individual retirement accounts (IRAs)
Deductions That Have Been Reduced
- State and local taxes (SALT) for joint returns limited $10,000
- Interest on new mortgages limited to $750,000 (for joint returns)
Deductions That Have Been Expanded
- Charitable contributions totaling up to 60 percent of your taxable income.
- Medical expenses that exceed 7.5 percent of your taxable 2018 income. This is temporary and will return to the previous threshold of 10 percent for 2019.
There are numerous other changes to the tax law that will affect individual filers in 2019. For more clarification of the specific deductions, you should consult with your tax advisor and update your tax planning as part of your long-term financial plan.
Charles P Myrick CPA offers tax preparation for individuals using a process that combines smart, personalized planning with annual tax preparation and filing. We work closely with tax lawyers, and investment advisors to ensure that all the details are legally sound, technically accurate, and working to your maximum benefit. Contact us to learn more: (202) 789-8898