Tax Facts

Changes to Schedule A Itemized Deductions for 2018

There are a number of changes that were made to the Schedule A itemized tax deductions that will apply to your 2018 tax return. But, first consider that with the generous standard deductions for all filing statuses, (standard deduction essentially doubled for everyone) you may not even be using the Schedule A this tax season.

If you have determined that you are using Schedule A, then here are some changes to be mindful of:

The section on taxes is limited to $10,000. So, if your property taxes are $13,000 then you can only deduct ten thousand of that amount. Those taxpayers who live in states that have high property taxes and/or high state income taxes will be most affected by this change.

The section on interest paid is also limited to loans of $750,000 down from $1 million.

The job expenses subject to 2% of your AGI is essentially eliminated. This means your financial advisory fees are no longer deductible, nor are your tax preparation fees, nor are your miscellaneous job expenses. There is an exception for military reservists.

Any medical expenses you had will still be deductible, but only if they exceed 10% of your AGI and not 7.5%.

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